Concept:The "how" or input question in economics is about the method of production.
It focuses on the combination of resources used to make goods and services.
Explanation:The "how" question asks which production techniques should be adopted.
A producer must combine the factors of production—land, labour, capital, and entrepreneur—in the most efficient way.
The choice of technique depends on the prices of these factors.
For instance, if labour is cheap and capital is expensive, a labour-intensive method is suitable.
If labour is expensive and capital is cheap, a capital-intensive method becomes preferable.
These prices are determined by the demand for and supply of each factor.
Thus, the "how" question is concerned with the actual arrangement of inputs to produce output.
It is not about resource scarcity, output distribution, or the profit-maximising level of output alone.
Answer:B. The way in which factors of production may be combined to produce output.