In deciding where to operate along its production possibilities frontier, a society is answering the question of
1. Explain which services and goods should be produced with its scarce resources.
2. Determine what production methods should be used to form the goods and services.
3. Discuss how output will be allocated among the individuals in the society.
4. Discuss what prices will be charged for goods and services.
5. Discuss how much will it trade with other societies in the world.