Question

The three questions of economics are based on decisions made by economies. What statement best describes why economies must make these decisions?

Answer 1

We are continually uncovering of new wants and needs which producers attempt to supply by employing factors of production. For a perspective on the achievements of countries in meeting people’s basic needs,  the Human Development Index produced by the United Nations is worth reading. The economist Amartya Sen (Winner of the 1998 Nobel Prize for Economics) has written extensively on this issue.