--%>

Central problems of an economy

Elucidate the central problems of an economy:

A) What to produce?
B) How to produce?
C) For whom to produce?

Answer:

A) It refers to that what services and goods are produced and in what quantities.
B) It refers to the choice of techniques of production of Services and goods.
C) It refers to the distribution of wealth and income.

   Related Questions in Microeconomics

  • Q : Determine total variable cost of a firm

    This firm’s total variable cost (TVC) equals area as: (w) 0phq2. (x) daef. (y) 0bgq2 minus area daef. (z) obgq2.

    Q : Elastic industry What industry is

    What industry is perfectly elastic that is not agriculture?

  • Q : Positively sloped supply curve of a

    Can someone please help me in finding out the accurate answer from the following question. According to most conventional theories of labor market: (1) The supply curve of labor is positively sloped as higher salaries attract the extra workers to the labor market. (2)

  • Q : Help The problem of asymmetric

    The problem of asymmetric information is that

  • Q : Produce output by profit-maximizing

    Unless this chooses to shut down since demand never exceeds average variable costs, in that case a profit-maximizing monopolist makes output where: (i) marginal revenue equals marginal costs [MR = MC]. (ii) marginal revenue minus marg

  • Q : Negatively-sloped straight line in

    When a demand curve is a negatively-sloped straight line, in that case demand is perfectly: (w) elastic where quantity demanded is zero. (x) elastic where price is zero. (y) inelastic where quantity demanded is zero. (z) elastic or inelastic all over

  • Q : Problem on numbers of Buyers Even when

    Even when each household’s demand curve didn’t shift, the market demand for the butter would increase if there were a raise in: (1) House-hold income. (2) People’s preferences for the butter. (3) Population. (4) Price of margarine.

  • Q : Supply curves toward right from

    Technological progress shift: (i) Demand curves up and to right. (ii) Production possibilities curve in the direction of their origins. (iii) Prices into inflationary spiral. (iv) Supply curves rightward from vertical axis. Can som

  • Q : Minimum Wage Laws-Unemployment Rises in

    Rises in the legal minimum wage rate have not been answerable for rising: (i) Unemployment among the teenagers. (ii) Racial discrimination in the employment. (iii) Unemployment between skilled workers who have lost their jobs since of competition from the cheaper impo

  • Q : Effect of minimum wage laws in

    The Minimum wage laws might efficiently raise employment: (i) When the set wage value surpasses labor market equilibrium. (ii) In industries of profoundly exercised monopsony power. (iii) In no condition; higher minimum wage floods the labor supply and lower minimum w