Basic Economic Problems of Society - SS1 Economics Past Questions and Answers - page 1

The question addresses the core economic problem of production methods. The best way to produce goods and services focuses on the 'how' of production, considering resource allocation and techniques.

Therefore, the correct answer is:

• B. How to produce

This refers to the problem of deciding which goods and services to produce and in what quantity.

One factor that influences a society's choices about what to produce is Culture.

 

This refers to the problem of deciding who should receive the goods and services produced. In a market economy, the price system determines who gets what, based on the ability and willingness to pay. In a command economy, the government decides who gets what based on social and political criteria.