When a textile company keeps track of its inventory using a computer and its competitor uses a pad of paper and a pencil, they are both answering the part of one of the two big economic questions.

Question

Quizplus · Accepted Answer

Keeping track of inventory deals with the "how" part of the two big economic questions, which are "what to produce" and "how to produce." The "what" part deals with determining what goods and services to produce, while the "how" part deals with figuring out the most efficient and effective way to produce those goods and services. Keeping track of inventory falls under the "how" part as it determines the most effective way to manage the production process.

When a Textile Company Keeps Track of Its Inventory Using