What are the four basic economic questions?

I have to know what the four basic economic questions are does any know what all four are?

9 Answers

  • • What should the economy produce? Market economies use price to answer this question. For example, Product X at a very high price may not sell, thus producers may stop making the product.

    • How should goods/services be produced? Producers combine resources (consumers sell factors of production) to make products they can sell. Price of factors of production influence producer decisions to make or not to make a product

    • Who should receive the goods/services produced? Incomes limit choices and decisions of consumers as they respond to price in the marketplace. Consumers earn incomes based on their contributions (factors of production) to production of goods/services.

    • How should the economy provide for growth? Producers increase the supply of goods and services in response to price in the marketplace. Consumers earn increased incomes as they respond (offer their labor or capital) to the price of factors of production.

  • Basic Economic Questions

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    RE:

    What are the four basic economic questions?

    I have to know what the four basic economic questions are does any know what all four are?

  • Well… I’ve taken 7 economics classes and I’ve been asked lots of questions, but I don’t ever remember 4 specific questions of economics…

  • It’s possible definitely

  • its uncertain there are in fact more than one potential answers to the question..

  • What how and for whom to produce

  • why are we broke?

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