BASIC ECONOMIC PROBLEMS OF EVERY SOCIETY
BASIC ECONOMIC PROBLEMS OF EVERY SOCIETY. Every society battles with the following Economic problems. Economic problems of what to produce, how to produce it, for whom to produced, efficient utilization of resourses and future growth of the Economy, WHAT TO PRODUCE It explains what kinds of goods to produce, that is what types of goods to produce and be made available for consumer satisfaction. HOW TO PRODUCE How to produce explains the methods of production to apply in production, is it capital intensive, which involves the use of machine for Mass production and efficiency. Is it labour intensive where manual labour will be applied. Decision will be taken on this. FOR WHOM TO PRODUCE This explains the category of people the production is meant in terms of age and population structure. Are the products meant for the children, adults or the old people. EFFICIENT UTILIZATION OF SCARCE RESOURCES This explains how limited available resources will be managed without waste. No idle resources