state the central problems of an economy
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The key central problems of an economy are:
1 What to produce- that is which type of products are to be produced by the economy. Whether it produce consumer goods or it produce capital goods.
2 How to produce-. Which states the problem of choice of technique. Whether the economy produce using labour intensive techniques or capital intensive techniques .
3 For whom to produce-. Which states the problem of choice of people for whom the goods are to be produced. That is whether it is to be produced for people who have the paying capacity or for poor people.
1 What to produce- that is which type of products are to be produced by the economy. Whether it produce consumer goods or it produce capital goods.
2 How to produce-. Which states the problem of choice of technique. Whether the economy produce using labour intensive techniques or capital intensive techniques .
3 For whom to produce-. Which states the problem of choice of people for whom the goods are to be produced. That is whether it is to be produced for people who have the paying capacity or for poor people.
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