The three economic questions that every society must answer are A. What goods will be produced, how will they be produced, and who will receive the goods? B. What are the prices of goods, how are they determined, and who will pay for them? C. What economic system will be used, how will it be implemented, and who will make market decisions D. What kind of government will the society have, how will it be run, and who will run it?
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The Deep Dive
Every society, regardless of its economic system, must grapple with the fundamental economic questions. This stems from the need to allocate limited resources efficiently. For instance, in a capitalist economy, the market largely dictates the production and distribution of goods, while in a socialist system, the government plays a significant role in answering these questions to ensure equity and availability. Understanding these economic questions can help you become a savvy consumer and informed citizen. When you know what drives production and distribution, you can better navigate the marketplace, make thoughtful purchases, and even engage in discussions about economic policies and reforms in your community, ultimately shaping a more informed and active society.