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| 1. |
Solution of economic central problems |
| Answer» Ways to solve fundamental problems in captalistic and planned economies:-In a market oriented or capitalist economy, the fundamental problems are solved by the market mechanism. Price is influenced by the market forces of demand and supply. These forces help us to decide what, how and for whom to produce. In a planned economy, all the economic decisions regarding what, how and for whom to produce are solved by the state through planning. Economic planning replaces the price mechanism. The market is regulated by the state. The prices of the various products are fixed by the state which are called administrated prices.<br>( I ) What to produce How to produce From whom to produce(2) The economic\'s central problems are unlimited wants, scarcity of resources and the alternative uses of the resources. I think what you are trying to ask is the central problems of an economy.<br>The economic\'s central problems are unlimited wants, scarcity of resources and the alternative uses of the resources. I think what you are trying to ask is the central problems of an economy.<br>What to produce How to produce From whom to produce | |