Q:

What are the three basic economic problems?

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Quick Answer

The three basic economic problems are what to produce, how to produce and for whom to produce. These three economic problems need to be addressed in any economy, regardless of level of affluence.

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Full Answer

Each society must determine what products and services they will produce. The society must also collectively decide how these products can be successfully created, as well as how these products and services can be accessed, and by whom. Although each society must provide answers to these three economic problems, it is usually the companies operating within the economic structure that will organically determine the direction the society will take.

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