There are 3 basic economic problems that every society faces: 1) What to produce and in what quantities, which depends on society's priorities and preferences between consumer goods now versus capital goods and consumer goods in the future. 2) How to produce goods, which is primarily dependent on the availability of resources and the type and quantity of goods to be produced. It also involves allocating scarce resources efficiently. 3) For whom to produce goods, as the distribution of income determines who will get what is produced, with the rich getting luxurious goods and the poor getting more of life's basic necessities.