Practice question · Match the pairs
Match each of the three economic questions to a real decision.
- What to produce?
- How to produce?
- For whom to produce?
- The underlying cause
- Resources are scarce relative to wants
- A region debates hospitals versus highways
- A tax system redistributes income
- A factory chooses robots over manual assembly
Hints
- The three questions concern the product, the method, and the recipient.
- Ask which of the three each decision is actually settling.
Show the answer
- What to produce? → A region debates hospitals versus highways
- How to produce? → A factory chooses robots over manual assembly
- For whom to produce? → A tax system redistributes income
- The underlying cause → Resources are scarce relative to wants
Why
What, how, and for whom, three questions no economy escapes, all forced by the same underlying scarcity.
Practise Scarcity
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