ECONOMICS
PRODUCTIVITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How to get money and how to keep it.
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Resource use, production, and distribution of goods and services.
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Making decisions about who owns what and how they got it.
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The differences between goods and services.
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Detailed explanation-1: -The central problem in economics is that what, how and for whom to produce and it is allocating scarce resources in such a manner that society’s unlimited needs or wants are satisfied as well as possible.
Detailed explanation-2: -Answer: Basic problems in Capitalist economies are solved through price mechanism, in Socialist economy through planning and in mixed economy through price mechanism and economic planning. Every economic activity in Capitalist economy is influenced by profit motive.
Detailed explanation-3: -The main causes of economic problems are: Scarcity of resources like labour, land, and capital are insufficient when compared to the demand. Human beings’ demands and wants are unlimited and keep multiplying. Therefore, they cannot be satisfied because of limited resources.
Detailed explanation-4: -An economic problem generally means the problem of making choices that occurs because of the scarcity of resources. It arises because people have unlimited desires but the means to satisfy that desire is limited. Therefore, satisfying all human needs is difficult with limited means.