Which of the following are fundamental questions that economics seeks to address?

• A. For whom should goods and services be produced?
• B. How should goods and services be produced?
• C. How can government eliminate scarcity?
• D. What goods and services should be produced?

Answer: (D)

Verified step by step guidance

1. Understand that economics is fundamentally concerned with how societies allocate scarce resources to satisfy unlimited wants. This leads to three core questions: What to produce? How to produce? For whom to produce?
2. Identify the first fundamental question: 'What goods and services should be produced?' This addresses the decision about which products and services best meet society's needs and wants given limited resources.
3. Recognize the second fundamental question: 'How should goods and services be produced?' This involves choosing the production methods and resource combinations to efficiently create goods and services.
4. Note the third fundamental question: 'For whom should goods and services be produced?' This concerns the distribution of output—who receives the goods and services produced in the economy.
5. Understand that 'How can government eliminate scarcity?' is not a fundamental economic question because scarcity is a basic economic problem that cannot be completely eliminated, only managed.