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The central problem of an economy is:
What to produce ?
How to produce ?
How to distribute produced goods ?
All of these
- What to produce?
This question addresses the types and quantities of goods and services an economy should focus on. The decision depends on factors like resource availability, consumer needs, and technological possibilities.
- How to produce?
This involves selecting the best methods and processes for production. It considers the efficient use of resources, costs, and environmental impacts.
- How to distribute produced goods?
This question deals with deciding who will receive the goods and services. It looks at different methods of distribution and allocation within the society.
- All of these
? The central problem of an economy involves all of these questions.
Economies must balance what, how, and how much to distribute to meet various needs and constraints.
By: santosh ProfileResourcesReport error
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