The Three Questions of Economics Exam Question |UPDATED|

The Three Questions of Economics Exam Question |UPDATED| The three questions of economics best help in making decisions about __________. *Ans* Production Which of the following best illustrates the importance of addressing the three questions of economics? People's desires and needs are always changing. Businesses need to use limited resources wisely. Traditional methods of production are outdated. Businesses need to limit production. *Ans* Businesses need to use limited resources wisely. Read the following scenario. A clothing company wants to expand into new regions. It is looking at an urban area with a large number of vacant warehouses. The population is made up of people with average educations and a lower standard of living. The company is experiencing slower sales but has hopes that product will take off and be successful. Which of the factors of production will the company need to address most closely when making its decision to expand? land capital land and labor labor and capital *Ans* Capital Which factors are considered when deciding how to make goods and services? Check all that apply. determining who has the greatest need finances of prospective buyers methods traditionally used to make a good ways to produce items at a lower cost or higher quality ways to make the biggest profit *Ans* Methods traditionally used to make a good Ways to produce items at a lower cost or higher quality Ways to make the biggest profit One of the three main questions of economics addresses who should: produce goods and services. market goods and services