The basic economic problems of society include___________

1. Analyze the question You are asked to identify the basic economic problems every society faces. These are the core questions that arise because resources are limited while human wants are unlimited.

2. Explain the concept Because of scarcity, every society must make choices. These choices boil down to three fundamental questions:

1. What to produce? Which goods and services, and in what quantities (e.g., more food or more roads?).
2. How to produce? Which methods and resource combinations to use (labour-intensive or capital-intensive?).
3. For whom to produce? How output is distributed among members of society.

Some textbooks add a fourth: how much to produce / how to allocate resources over time (growth). The three above are the standard answer in JAMB.

Note that scarcity is the root cause of these problems, not one of the three basic problems themselves.

3. Solve step by step

• A. scarcity, for whom to produce and where: "Scarcity" is the cause, not a basic problem, and "where to produce" is not one of the standard questions. ❌
• B. what to produce, how and for whom: This matches exactly the three standard basic economic problems. ✅
• C. scarcity, when to produce and how: "Scarcity" is the cause, and "when to produce" is not a standard basic problem. ❌
• D. how to produce and sell: "Sell" is not part of the standard list, and "what" and "for whom" are missing. ❌

4. Answer The correct option is B: what to produce, how and for whom.

5. Exam tip Remember "What, How, For Whom" as the three basic economic questions. If an option contains "scarcity" as one of the "problems", be careful: scarcity is the reason the problems exist, so it is usually a trap.