1. Economics can be used to solve problems related to the production of goods and services by addressing issues of scarcity. 2. The scarcity of resources gives rise to four basic economic problems: what to produce, how to produce, for whom to produce, and what provisions should be made for economic growth. 3. To address these problems, societies must make wise decisions about the type and quantity of goods and services to produce to meet immediate needs, determine effective production methods, prioritize distribution to those in most need, and save resources for future economic progress.