Central problems of an economy1)what to produce?2)how to produce?3)for

1.	Central problems of an economy1)what to produce?2)how to produce?3)for whom to produce?
Answer» 1) What to produce - this problem involves selection of goods and services to be produce and the quantity to be produce of each selection commodity. Every economy has limited resources and it can not produce all the good.Example - production of more sugar is possible only by reducing the production of other good.so an economy has to decide which good should be produce and in what quantity 2) How to produce - this problem refers to technique to be used for production of good and services.Techniques are classified as-labour intensive techniques (LIT) and capital intensive techniques (CIT)3.For whom to be produce - this problem relates to the distribution of produced goods and services among the individuals within the economy that is selection of category of people who will ultimately consume the goods. Whether these distribution of good for more poor and less rich or more rich and less poor<br>1. What to produce?Ans. It refers to selection of goods and services and quantity to be produced of each selected commodity.

Central problems of an economy1)what to produce?2)how to produce?3)for whom to produce?