3 Basic Economic Questions Zachary derington

What to Produce?

Should a society direct most of its resources to the production of military equipment or to other items such as food, clothing, or housing? Suppose the decision is to produce housing. Should its limited resources be used for low-income, middle-income, or upper-income housing? How many of each will be needed? A society cannot have every-thing its people want, so it must decide what to produce.

How to Produce?

Should factory owners use mass production methods that require a lot of equipment and few workers, or should they use less equipment and more workers? If an area has many unemployed people,the second method might be better. On the other hand, mass production methods in countries where machinery and equipment are widely available can often lower production costs. Lower costs make manufactured items less expensive and, therefore, available to more people.

For Whom to Produce?

After a society decides WHAT and HOW to produce, the things produced must be allocated to someone. If the society decides to produce housing, should it be distributed to workers, professional people, or government employees? If there are not enough houses for everyone, a choice must be made as to who will receive the existing supply.

These questions concerning WHAT, HOW, and FOR WHOM to produce are not easy for any society to answer. Nevertheless, they must be answered as long as there are not enough resources to satisfy people’s seemingly unlimited wants.

Credits:

Created with images by Alexas_Fotos - "piggy bank money dollar bill" • skeeze - "soldiers military attention" • SD-Pictures - "industry sunrise sky" • tpsdave - "new york city tribute in lights sky"

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.