Question

8. Explain the central economic problem of ‘How to produce’ .​

Answer 1

${❥}\huge{\mathtt{{\purple{\boxed{\tt{\pink{\red{A}\pink{n}\orange{s}\green{w}\blue{e}\purple{r᭄}}}}}}}}$

The central problem of 'How to Produce' deals with which production technique to employ in the production of the decided goods and services. That is, whether to employ labour intensive technique or to employ capital intensive technique of production. Here, the economy needs to