Every human society, wether it is an advanced industrial nation. A certainly planned economy ,or an isolated tribal nation must confront and resolve 3 fundamental economic problems. Every society must have a way of determining what commodities are produced, how these goods are made and for whom they are produced. Indeed these three fundamental questions of economic organization what, how ,and for whom are crucial today as they were at the dawn of human civilization.
To answer that three questions , Every society must make choices about the economy input and output .Input are commodities or services that are used to produce goods ,And outputs are the various useful goods or service that result from the production process and are either consumed or employed in further production.
Another term for input is factor of production. These can be classified into the broad categories, Such as: Land, Labor, Capital
Restating the 3 economic problems in term of input an outputs, A society must decide(1)what output produce, And in what quantity (2)How to produce them that is, By what techniques inputs should be combined to produced the desire outputs, and (3) For whom the outputs should be produced and distributed.