Is problem of choice a central problem?
Dear student,
Every economy faces some basic problems and these are known as central problems of an economy, Central problem includes the problems that arise due to problem of choice and scarcity. The central problems of an economy are:
What to produce: As resources are limited and demands are unlimited one need to make choice as what to produce,
How to produce: it deals with taking decisions as to by what technique goods are to be produced.
For whom to produce: it includes decision like whether to produce for economy or to produce for self consumption.
Regards
Every economy faces some basic problems and these are known as central problems of an economy, Central problem includes the problems that arise due to problem of choice and scarcity. The central problems of an economy are:
What to produce: As resources are limited and demands are unlimited one need to make choice as what to produce,
How to produce: it deals with taking decisions as to by what technique goods are to be produced.
For whom to produce: it includes decision like whether to produce for economy or to produce for self consumption.
Regards