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