Answer to Question #295378 in Economics of Enterprise for H3Z

Question

State & explain two key questions about how resources are allocated.

Answer 1

The two key questions on resource allocation are what? and How?.

The first question is what goods and services are produced with the limited resources in the society. It is vital since wants and needs are unlimited compared to the limited resources hence choices must be made.

Secondly is how are the limited resources combined to produce goods and services. The society need to decide which limited resources for which goods since each goods cannot be made from same resources.