Question

Which situation illustrates the basic economic questions? (1 point)

Answer 1

I believe the answer is D, your friend bakes cookies with ingredients specified by a recipe and sells them to neighbors

Answer 2

Answer:

The situation- Your friend bakes cookies with ingredients specified by a recipe and sells them to neighbors illustrates the basic economic questions.

Explanation:

Among the given situations, buying ingredients to bake cookies and selling them to neighbors is a situation where the raw materials are being bought from the shop and are made into a final consumable product. Then the final product i.e. the baked cookies is been sold out to neighbors.

The basic economic questions are

• What product or service to produce?
• How to produce?
• From whom to produce

Here, the product to produce is cookies with ingredients specified by a recipe and the final consumers are neighbors.