2. How will the needed products and services be produced?

There are two levels of economic decisions. Businesses and individuals make decisions about what to produce and what to consume. Businesses must decide how to use the resources they have available to produce and sell products and services. Their goal is to make the most profitable decisions.

Individual consumers must decide how to use the resources they have available to purchase products and services. Their goal is to get the greatest satisfaction from their decisions. The level of economic decisions related to the choices of individuals and businesses is known as microeconomics.

The second level of economic decisions is known as macroeconomics.

Macroeconomics relates to economic decisions made at a national level.