Questions in Economics

Every economy, whether small like a village or large like a country, must answer three central questions:

1. What to produce? – Should resources be used to grow food, make clothes, or build smartphones?
2. How to produce? – Should production rely on machines (capital-intensive) or human labor (labor-intensive)?
3. For whom to produce? – Who gets the goods: only the rich, or also the poor?

Different economic systems (capitalism, socialism, mixed economy) answer these questions in different ways.