what is the central problem of an eonomic
Answers
Answer:
The economic problem – sometimes called the basic or central economic problem – asserts that an economy's finite resources are insufficient to satisfy all human wants and needs. Economics involves the study of how to allocate resources in conditions of scarcity. However, viewing economics as the study of how society allocates resources can lead to conflation of normative economic planning and empirical study of how economic agents operate in these conditions.
In mainstream neoclassical economics, it is assumed that humans pursue their self-interest, and that the market mechanism best satisfies the various wants different individuals might have. These wants are often divided into individual wants (which depend on the individual's preferences and purchasing power parity) and collective wants (which are the wants of entire groups of people). Things such as food and clothing can be classified as either wants or needs, depending on what type and how often a good is requested.
Economists have sometimes
characterized "how" to produce as a "technological problem" of efficiency whereas the allocation of what is produced is an "economic problem".
Answer:
The central problem of an economic is not taking essential precautions towards peasants.And another most problem is the lower number of factories.