The Three Economic Questions

Before an economist embarks upon developing a system or business it is important to ask three basic questions. Without answers to the Three Economic Questions it is impossible to create a functional economic system. So, what are the Three Economic Questions?

1. Which goods or services are to be produced?

Prior to opening a business or developing an economic system the economist or entrepreneur must know what it is they are providing to the market. You can not have a business if you do not know what it is that you are selling.

2. How are the goods or services to be produced or rendered?

If an economist or entrepreneur is to be successful they must have an understanding of how they are to produce goods or render their services.

3. Who is going to pay for the goods or services?

The successful economist or entrepreneur knows who they are selling their goods or services to. Without an understanding of customers' needs the economist or entrepreneur is less likely to be efficient and profitable.

To summarize in other words, if you are to operate a business you must know the Three Economic Questions.

What to sell?
How to provide it?
Who will buy it?