Answer:
Land, labor, and capital also are known as factors of <u>Production.</u>
Factors of production help in the production of goods and services to convert raw materials into finished goods. There are 4 of them including land, labor, capital, and entrepreneurship.
Economies must answer the three economic questions because resources are <u>Limited.</u>
There are 3 fundamental economic questions that should be answered before goods and services are produced so that the economy in question can be able to prioritize. These questions are; What to Produce, How, and for Whom?
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If an economy does not answer the three economic questions, resources may <u>Run Out</u><u>. </u>
As the economy has scarce resources, the aforementioned questions should be used to prioritize ventures in such a way that the resources that are available are channelled towards the most efficient of those ventures otherwise the resources might run out.
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<u>Negative</u> Consequences can result when an economy does not answer the three economic questions .
If the economy fails to answer the questions, there will be negative consequences as resources will become scarce and the economy will suffer because production will reduce and the people in the economy become worse off as a result.
