Paper 3 · opportunity cost and scarcity
Economic systems must answer three basic economic questions. 'What to produce' and 'how to produce' are two of them. State the third.
Model answer
for whom to produce
Also accepted: who to produce for, for whom to produce goods
Explanation: Because resources are scarce, every economic system must decide what to produce, how to produce it, and for whom to produce it, that is, how the output is to be distributed among members of society.
Derived from ZIMSEC Economics Paper 3, November 2006, Q1
