Define the Central problems of an economy. – InterviewSolution

InterviewSolution

1.

Define the Central problems of an economy.

Answer»

Central problems are those problems which arise in every economy. At the micro level, these problems are:

(i) What to produce? (ii) How to produce? and (iii) For whom to produce?

At the macro level, these are (i) problem of fuller utilisation of resources, and (ii) problem of growth of resources.

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