1.3 - The Three Questions of Economics - Instruction
Suarez Farms and Super-Phonic Systems had some difficult decisions about what to make, who to make it for, and how to make it. Each business first had to think about the kind of _______ or service it wanted to provide before considering if it was the best fit for ___ ______. Finally, the companies had to take their _________ wants and needs into consideration. In making their decisions, both companies had to remember the factors of production: land or natural resources, _____, and capital.
- product - the market - customers' - labor
Land, labor, and capital also are known as factors of __________. Economies must answer the three economic questions because resources are _______. If an economy does not answer the three economic questions, resources may ___ ___. ________ consequences can result when an economy does not answer the three economic questions.
- production - limited - run out - Negative
The three questions of economics are based on decisions made by economies. What statement best describes why economies must make these decisions?
Economies must make these decisions because resources are limited.
Which statements correctly identify limitations of the factors of production?
- Economies must consider their limitations when answering the three questions of economics. - Capital includes all money and physical facilities needed to create a product. - Labor is a factor driven by the size of the population, education, and standard of living.
