Explain difference between wants and needs. Does the government decide what to produce in all societies? What are the 3 basic economic questions?

Wants and needs are two different concepts in economics. Needs refer to the basic necessities that are required for survival, such as food, clothing, and shelter. Wants, on the other hand, are desires or wishes that are not essential for survival but can enhance the quality of life, such as luxury items or entertainment.<br /><br />In a free market economy, the government does not decide what to produce. Instead, the production of goods and services is determined by the interaction between supply and demand in the market. Producers produce what consumers want to buy, and consumers decide what to buy based on their preferences and budget constraints.<br /><br />The three basic economic questions that every society must answer are:<br /><br />1. What to produce? - This question refers to the decision of what goods and services should be produced to meet the needs and wants of the society.<br />2. How to produce? - This question refers to the decision of how the goods and services should be produced, i.e., what resources and technology should be used.<br />3. For whom to produce? - This question refers to the decision of who will receive the goods and services produced, i.e., how the output will be distributed among the members of the society.