Scarcity (Economic Problem-7)

What Will Be Produced?
To answer the first fundamental eco- nomic question, a society must decide the mix of goods and services it will produce. Will it produce mainly food, or will it also produce automobiles, televisions, computers, furniture, and shoes? The goods and services a society chooses to produce depend, in part, on the natural resources it pos- sesses. For example, a country that does not possess oil is unlikely to choose to produce petroleum products. Resources, however, do not completely control what a country produces. Japan does not possess large amounts of the iron ore needed to make steel. Yet Japan is a leading pro- ducer of automobiles, whose construction requires a great deal of steel.

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