Q. 124.3( 3 Votes )

Why do the centra

Answer :

The central problems of an economy arises due to three reasons:

a) The wants of the people are unlimited.


b) The resources to satisfy these wants are limited.


c) These limited resources have alternative uses.


The central problem of ‘for whom to produce’ means how much output should be distributed among the people. It also means the level of output a person will receive depending upon his income. So, the basic issue here lies in deciding how should the income be distributed in society.


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

Why do the centraEconomics - Board Papers