Fundamental Questions of Economics Due to Scarcity

Steps:

• Identify the core economic problem: scarcity forces choices in resource allocation.
• Recall the three basic questions: what goods to produce, how to produce them, and for whom to produce.
• Match the passage structure: first blank for "what," second and third for "how," and last for "for whom."
• Eliminate options that do not align with these standard questions.

Why C is correct:

• It matches the definition of the three central economic questions arising from scarcity: what to produce (allocating resources to goods), how to produce (methods and technology), and for whom to produce (distribution of output).

Why the others are wrong:

• A: "When" and "where" ignore production methods and distribution, focusing on irrelevant timing and location.
• B: Starts with "how" instead of "what," skipping resource allocation choice.
• D: "When" and "where" replace standard "how" and "for whom," omitting production efficiency and equity.

Final answer: C