Which of the following lists best represents the five fundamental questions that all economies must address?

• A. What is the opportunity cost? What is the marginal benefit? What is the marginal cost? What is the equilibrium price? What is the market demand?
• B. Who owns the resources? Who sets prices? Who enforces contracts? Who determines wages? Who controls trade?
• C. What to produce? How to produce? For whom to produce? How much to produce? When to produce?
• D. What goods and services will be produced? How will goods and services be produced? Who will get the goods and services? How will the system accommodate change? How will the system promote progress?

Answer: (D)

Verified step by step guidance

1. Understand that the five fundamental economic questions are designed to address the allocation of scarce resources in any economy.
2. Recall the traditional three fundamental questions: 'What to produce?', 'How to produce?', and 'For whom to produce?'. These questions focus on the types of goods and services, the production methods, and the distribution among people.
3. Recognize that modern economic analysis often expands these questions to include how the economic system adapts to change and promotes progress, reflecting dynamic aspects of economies.
4. Compare each provided list to these core ideas: the first list focuses on economic concepts like opportunity cost and marginal analysis, which are important but not the fundamental questions themselves.
5. The last list aligns best with the fundamental questions by addressing what goods and services will be produced, how they will be produced, who will receive them, and how the system handles change and progress.