Land, labor, and capital also are known as factors of Production
Economies must answer the three economic questions because resources are Limited
If an economy does not answer the three economic questions, resources may Run out
Negative consequences can result when an economy does not answer the three economic questions.
Explanation:
The three basic economics question that must be answered are:
What goods and services will be produced?
How will the goods and service will be produced?
Who will consume the goods and services?
Every society must answer these three question in order to meet the needs of its people. Every society answer these 3 basic questions differently, but each encounters the same fundamental problems, that are resourcea allocation and scarcity.
