The three fundamental questions of economics best help in making decisions about:

• A. how to increase population growth
• B. how to maximize government revenue
• C. how to eliminate all opportunity costs
• D. how to allocate scarce resources

Answer: (D)

Verified step by step guidance

1. Understand that the three fundamental questions of economics are: What to produce? How to produce? For whom to produce? These questions arise because resources are scarce and choices must be made.
2. Recognize that these questions help in deciding how to allocate scarce resources efficiently among competing uses, rather than focusing on population growth, government revenue, or eliminating opportunity costs.
3. Analyze each option given in the problem and relate it to the core purpose of economics, which is about resource allocation and decision-making under scarcity.
4. Identify that 'how to allocate scarce resources' directly addresses the essence of the three fundamental economic questions, making it the correct choice.
5. Summarize that the three fundamental questions guide economic agents (individuals, firms, governments) in making decisions about resource use to satisfy needs and wants optimally.