Which of the following lists the three basic economic questions all societies must answer?

• A. What to produce, how to produce, and for whom to produce?
• B. Who owns resources, who sets prices, and who enforces contracts?
• C. What is the opportunity cost, what is the marginal benefit, and what is the marginal cost?
• D. How much to save, how much to invest, and how much to consume?

Answer: (A)

Verified step by step guidance

1. Understand that every society faces scarcity, which means resources are limited while wants are unlimited. Because of this, societies must decide how to allocate resources efficiently.
2. Identify the three fundamental economic questions that arise from scarcity: (1) What goods and services should be produced? (2) How should these goods and services be produced? (3) For whom should these goods and services be produced?
3. Recognize that these questions address the allocation of resources and distribution of output, which are central to economic decision-making in any society.
4. Compare the given options to these three questions. The correct list should directly correspond to these fundamental economic questions.
5. Conclude that the correct answer is the option that states: 'What to produce, how to produce, and for whom to produce?' because it precisely captures the core economic problems every society must solve.