Question

Briefly explain three economic problems that each country faces.

Answer 1

Instruction:

• Write about three economic problems

Solution:
Every economy faces three economics problems that are as follows:

• What to Produce?
  • This problem refers to decisions made on the variety of items to be produced and the required amount. Natural resources, labour, land, machinery, money, equipment, and tools are all limited in supply.
  • Therefore, it's crucial to ascertain what goods and services are required, together with their amounts.
• How to Produce?
  • This problem relates to the choice of techniques that must be used in the production of products and services. The two most common processes are Capital-intensive and labor-intensive techniques.
• For whom to Produce?
  • One of the most crucial issues facing the economy is deciding which products to provide for various societal groups. For instance, whereas all societal segments have a need for fundamental goods and services, only a small number of societal segments are drawn to luxury goods. Because of this, comprehending this topic requires a grasp of socioeconomic issues that affect a country or market.