Which of these is NOT a basic economic problem of society?

Step 1: Analyze the question We are asked to find the option that is NOT one of the basic economic problems of society.

Step 2: Recall the concept Every society has unlimited wants but limited resources. This scarcity forces every society to answer the same central questions:

1. What to produce? Which goods and services, and in what quantities.
2. How to produce? Which techniques and combination of resources to use (labour-intensive or capital-intensive).
3. For whom to produce? How output is shared among members of society.

Some textbooks add related problems:

• Efficiency of resource use (full employment and best use of scarce resources)
• Economic growth (how to increase productive capacity over time)

Step 3: Check each option

• A. Efficiency of resource use: Commonly accepted as a basic problem, since scarce resources must be used wisely. ✔
• B. For whom to produce: A core problem (distribution). ✔
• C. How to produce: A core problem (choice of technique). ✔
• D. Scale of production: This is a decision a firm makes about how large to operate. It is not one of the fundamental problems arising from scarcity at the level of society. ✘
• E. What to produce: A core problem (choice of goods). ✔

Step 4: Answer D. Scale of production is the option that is NOT a basic economic problem of society.

Exam tip: Remember the trio "What, How, For Whom". Anything outside these (such as scale of production, or the location of a factory) is usually a firm-level decision, not a basic societal problem. When one of the options is not among these three, check whether it is a recognised extension, such as efficiency or growth. If it is not, that is your answer.