Basic Economic Questions Practice

A bakery chain is deciding whether to introduce gluten-free products to attract more health-conscious customers.

Which basic economic question is being answered?

• What goods/services will be produced?

• How will the goods/services be produced?

• Who will get the goods/services?

Answer explanation

The bakery chain is considering introducing gluten-free products, which directly addresses the question of 'What goods/services will be produced?' This choice reflects their decision on the types of products to offer.

A factory is deciding whether to use robots to increase production speed or to stick with manual labor for better craftsmanship.

Which basic economic question is being answered?

• What goods/services will be produced?

• How will the goods/services be produced?

• Who will get the goods/services?

Answer explanation

The factory's decision on using robots or manual labor addresses the method of production. Thus, it answers the question: 'How will the goods/services be produced?' rather than what will be produced or who will receive them.

A clothing company is debating whether to sell its latest line of high-end fashion items only in exclusive boutiques or make them available in regular department stores as well.

Which basic economic question is being answered?

• What goods/services will be produced?

• How will the goods/services be produced?

• Who will get the goods/services?

Answer explanation

The question addresses the distribution of the high-end fashion items, determining who will have access to them. This relates to the basic economic question of 'Who will get the goods/services?'. Thus, the correct choice is this option.

A smartphone manufacturer is deciding whether to use cheaper labor overseas or to produce its products domestically where wages are higher but quality standards are stricter.

Which basic economic question is being answered?

• What goods/services will be produced?

• How will the goods/services be produced?

• Who will get the goods/services?

Answer explanation

The question addresses how the smartphone manufacturer will produce its goods, considering labor costs and quality standards. This directly relates to the economic question of 'How will the goods/services be produced?'.

A government is deciding whether to focus its resources on building more schools or on investing in renewable energy infrastructure.

Which basic economic question is being answered?

• What goods/services will be produced?

• How will the goods/services be produced?

• Who will get the goods/services?

Answer explanation

The government is deciding between building schools or investing in renewable energy, which directly relates to the question of 'What goods/services will be produced?' as it involves choosing the focus of resource allocation.

A local government is deciding whether to set prices for apartments based on the need of the applicant or let market forces (supply and demand) to decide who can afford the appartments.

Which basic economic question is being answered?

• What goods/services will be produced?

• How will the goods/services be produced?

• Who will get the goods/services?

Answer explanation

The question addresses who will have access to the apartments, which relates to the distribution of goods/services. Setting prices based on need or market forces directly impacts who can afford the apartments.