Briefly explain the central problems of an economy. – InterviewSolution

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1.	Briefly explain the central problems of an economy.
Answer» •The three basic economic PROBLEMS are REGARDING the allocation of the RESOURCES. These are what to produce, how to produce, and for whom to produce.•Scarcity of resources having alternative uses in relation to demand gives rise to the problem of choice-called central problem. Every economy has to decide how MUCH resources are to be used in production of different goods and services. THUS, allocation of resources is the fundamental problem.

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