explain central problem of an economy
Answers
Answer :- Some of the central problem which are faced by economy are :
- production
- Distribution
- TRansportation of goods and services.
These are some of the central problem which are faced by our country.
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answer
Some of the central problems that are faced by every economy of a country are as follows:
Production, distribution and disposition of goods and services are the basic economic activities of life. In the course of these activities, every society has to face sþcarcity of resources. Because of this scarcity, every society has to decide how to allocate the scarce resources.
explanision
Human wants are unlimited but resources to meet these wants are limited. These limited resources can also be put to alternative uses. Scarcity of resources creates the problems of choice making. This is the problem of making the best use of resources.
An economy may also be compared with an individual. Looked at from the point of view of an economy, the scope extends to the adjustment of unlimited wants and scarce means to solve the problems of income, output and employment. These problems are common to every economic system. In every economy, economic resources are limited whereas wants are unlimited.
This is why; every economy has to face the following basic problems. They are the central problems of an economy.