Question

Explain the central problem of an economy with the help of an example.​

Answer 1

A problem that an economy predominantly faces is the allocation of resources. Due to the scarcity of available resources, it leads to the troublesome situation of assigning these limited resources to produce goods and services that can fulfil societal wants maximally.

Answer 2

Answer:

A problem that an economy predominantly faces is the allocation of resources. Due to the scarcity of available resources, it leads to the troublesome situation of assigning these limited resources to produce goods and services that can fulfil societal wants maximally.