Discuss central problem of an economy

1.	Discuss central problem of an economy
Answer» 1. WHAT TO PRODUCE- this problem refers to selection of goods and services that are to be produced in an economy2.HOW TO PRODUCE- it refers to selection of technique to be used in production of goods and services. It can be of two types•CIT(capital intensic technique) - more of capital less of labour•LIT( labour intensive technique)- more of labour less of machines3.WHAT TO PRODUCE- it refers to selection of people who will ultimately consume goods and services. This involves making a choics wheter to produce more for rich and less for poor or vice versa

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