Which of the following are major decisions that must be addressed by any economic system?

• A. How to maximize government spending
• B. How to eliminate all opportunity costs
• C. What to produce, how to produce, and for whom to produce
• D. How to ensure all resources are renewable

Answer: (C)

Verified step by step guidance

1. Step 1: Understand that an economic system is a method used by societies to allocate scarce resources to satisfy unlimited wants.
2. Step 2: Identify the three fundamental economic questions every economic system must answer: (1) What to produce? (2) How to produce? (3) For whom to produce?
3. Step 3: Recognize that 'How to maximize government spending' is not a fundamental economic question but rather a policy choice within some economic systems.
4. Step 4: Understand that 'How to eliminate all opportunity costs' is impossible because opportunity cost is inherent in scarcity and choice.
5. Step 5: Note that 'How to ensure all resources are renewable' is an environmental or sustainability concern, not a core economic decision in traditional economic systems.