Question

Discuss and prepare a note on how the basic economic problems are related to the economic activities like pro- duction, distribution and consumption.​

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Class 11

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>>Introduction to Microeconomics

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>>Explain the central problem of \"for who

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Explain the central problem of "for whom to produce".

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Production, exchange and consumption of goods and services are among the basic economic activities of life. In the course of these basic economic activities, every society has to face scarcity of resources and it is the scarcity of resources that gives rise to the problem of choice.

For whom to produce is one of the central problems of any economy and refers to the problem of how to distribute the produced goods and services among the individuals within the economy. For eg-

Who gets how much of the goods that are produced in the economy? How should the produce of the economy be distributed among the individuals in the economy? Who gets more and who gets less? Whether or not to ensure a minimum amount of consumption for everyone in the economy? Whether or not elementary education and basic health services should be available freely for everyone in the economy?