Which basic economic question determines how a society will produce goods and services?

• A. How will goods and services be produced?
• B. What goods and services will be produced?
• C. For whom will goods and services be produced?
• D. How much profit will be made from producing goods and services?

Answer: (A)

Verified step by step guidance

1. Identify the three fundamental economic questions that every society must answer: (1) What goods and services will be produced? (2) How will goods and services be produced? (3) For whom will goods and services be produced?
2. Understand that the question 'How will goods and services be produced?' focuses on the methods and resources used in production, such as labor, technology, and capital.
3. Recognize that this question addresses the allocation of resources and the choice of production techniques, which can affect efficiency and cost.
4. Compare the given options to see which one directly relates to the production process rather than the output or distribution.
5. Conclude that the basic economic question determining the production method is 'How will goods and services be produced?' because it deals with the means of production.