Question

One of the three economic questions deals with deciding

what goods and services should be produced.
what the costs of production should be.

Answer 1

Correct answer: "what goods and services should be produced."

The three basic economic questions every economy must answer are:
- What to produce? (which goods and services)
- How to produce? (which methods and resources—this is where production costs enter)
- For whom to produce? (who receives the output)

So deciding costs of production is part of "how to produce," not the separate question listed.