Main issue or central problem of an economic

Main issue or central problem of an economic

Every economy have lot of issue or problem like what to produce, how to produce, for whom to produce, unemployment, capital goods, consumer goods and so on. Every economic have a limited or rare resources to use. So every economy wants to optimum utilization of available rare resources. Also when there is a multiple use of a single resource.

central problem of an economic

Main issue or central problem of an economy

What to produce and how much – every human being have a different demand for goods and services. Overall in economic have a multiple demand so it is the responsibility of the economic to analysis these different products demand and produce that much quantity which is sufficient or equal to demand.

How to produce – every economic have a multiple demand for different product and there are lot of combination and method for production. So every economic choose one method for production which is cost effective and produce more goods and services to meet the demand.

For whom to produce – in our society, there are lot of difference in our income level. Some-one is earning more than a lot but other one is earning below 10K. So it creates a difference in their buying behaviour for goods and services. Another is consumer goods and capital goods or durable goods. So economic have to decide those things. Governments also play an important role by tax collection, social security and try to cover the gap between high to low level income.

Efficiency in utilizing the resources – it is the responsibility of the society or economic to find out that there are full utilization of resources or less then the capacity. There are rare resources in every economic so that is our duty to use them full. Say no to misuse or wrong distribution.

Is the economy growing – this is the final step of the process that a economy is growing or not. If we are growing so what is the rate and if we are not growing so what is the reason for this. What is the ratio in production of consumer goods and capital goods? Find out the new innovation for economy and their use