Three basic decisions must be made by all economies. What are they?

Question

Quizplus · Accepted Answer

The three basic decisions that must be made by all economies are what will be produced, how goods will be produced, and for whom goods will be produced. These decisions are referred to as the central economic problems and are the foundation of economic systems. Option A is incorrect as the cost of production is not a decision made by the economy but rather a result of the decisions made. Option B is incorrect as the economy does not determine the price of goods, producers and consumers respond to market forces to determine prices. Option D includes terms that do not directly relate to the central economic problems.

Three Basic Decisions Must Be Made by All Economies