The document discusses the three economic questions that must be answered by an economic system in distributing scarce resources: 1) What goods and services should be produced? This addresses balancing production of different goods like military vs consumer goods or education vs police funding. 2) How should goods and services be produced? This considers questions of production methods like the use of technology, labor, or resources. 3) Who consumes goods and services? Determining demand and appropriate markets for consumption of different goods.