Question

Discuss the central problems of an economy.

Answer 1

Central problems of an economy are. What to produce, How to produce, and For whom to produce.
'What to produce' relates to the problem of choice of goods and services to be produced.
'How to produce' relates to the choice of technique of production. It involves a choice between labor-intensive technique and capital - intensive technique.
'For whom to produce' relates to the distribution of goods and services across different sections of society. It focuses on the issue of Economic Equality.