ECONOMICS
PROPERTY RIGHTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A factory decides to adopt a new production system to save energy.
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A manufacturer decides to develop a new series of mobile computing devices.
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A magazine publisher decides to provide a digital version of its magazine on the Internet.
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The government decides to adjust the ratio of public rental housing flats to Home Ownership Scheme (HOS) flats.
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Detailed explanation-1: -Central problem of choice of technique refers to the problem of how to produce. Every society has to decide on how much of which of the resources to use in the production of each of the different goods and services. Whether to use more labour or more machines.
Detailed explanation-2: -The central problem of ‘How to Produce’ deals with which production technique to employ in the production of the decided goods and services. That is, whether to employ labour intensive technique or to employ capital intensive technique of production.
Detailed explanation-3: -The problem of ‘what to produce’ deals with the production of necessary goods that have demand in the economy which can be evenly distributed so that social as well as economic stability is maintained in the economy.
Detailed explanation-4: -The central problems of an economy revolve around the following factors:. What to produce? How to produce? For whom to produce?