Key Questions of Economic Thinking (10 minutes)

This concept refers to the cost advantages that a business obtains due to expansion

Five fundamental Economic Questions
The five key fundamental economic questions include; What goods and services are produced and what quantities; How are goods and services produced; When are goods and services produced; Where are goods and services produced; Who consumes the goods and services produced.

The 5 Fundamental Questions

Answer these questions but keep in mind the concept of consumer sovereignty - the buyer’s needs nearly always dictate the answers to these questions.

What to Produce?

• What determines whether we build more homes or make more VCRs?
• How do these choices change over time?
• How are they affected by changes in technology?

How to Produce?

• Why do we use machines in some places and people in others?
• Does technology destroy jobs?