What goods to produce
The first fundamental question is: what goods will be produced? In economics, it is understood that goods and services do not just exist, they are produced by humans. The decision to produce a certain product has to be conscious and deliberate. Usually, the answer to this question means a lot for a person’s view of economics. In modern economics, we produce anything that people are willing to buy. In this sense therefore production is done to meet market needs.
How to produce the goods and services
The second question is how can we produce the said goods and services? To answer this question appropriately one has to think like an economist. To an economist, logic demands that you produce goods and services using the most cost-effective method. However, one cannot ignore other factors such as the quality of production which has to be kept in mind too.
Who gets the goods and services?
As for who gets the goods and services that are produced, the answer is anyone who is able and willing to buy the goods and services. According to the classical theory of economics a man can do something for their own self interest and this will be helpful to everyone else. In a typical market, someone sells goods and services in order to get profits. This is self interest. But by selling these goods and services, they are able to help meet the needs of a consumer too. Likewise, a consumer will buy goods and services for their own benefit, but in the process, they will be able to help the producer by boosting their business.