Question

John has a large apple orchard. He has decided to bake pies and sell them at the local farmer’s market. Which best describes John’s use of economics?

John is using available and renewable resources.
John is relying on inexpensive labor costs to improve profits.
John is using resources to produce both goods and services.
John is assuming consumers will have limited need for his product.

Answer 1

John is using resources to produce both goods and services.

Explanation: He uses orchard apples and his labor/capital to make pies (a good) and sells them at the market (an economic service/activity), which is a basic economic use of scarce resources to produce goods and services.