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What to produce?
There are two aspects of this problem--- firstly, which goods should be produced, and secondly, what should be the quantities of the goods that are to be produced. The first problem relates to the goods which are to be produced. In other words, what goods should be produced? An economy wants many things but all these cannot be produced with the available resources.
Therefore, an economy has to choose what goods should be produced and what goods should not be. In other words, whether consumer goods should be produced or producer goods or whether general goods should be produced or capital goods or whether civil goods should be produced or defense goods. The second problem is what should be the quantities of the goods that are to be produced.
Production of goods depends upon the use of resources. Hence, this problem is the problem of allocation of resources. If we allocate more resources for the production of one commodity, the reÂsources for the production of other commodities would be less.
Keshawn Ziemann
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How does the price mechanism solve the problem of what to produce of a free enterprise economy?
The forces of demand and supply regulated by price helps producers and resource owners solve the problem of what to produce
In Which type of economy does the government decide what to produce how to produce and for whom to produce?
Controlled.
What to produce in mixed economy?
You should produce mixed goods in a mixed economy.
Who determines what goods to produce in the economy?
It is the demand and supply which determines the goods and services to produce in the economy.
An economy where the government decides what to produce and how to produce it?
Controlled
How does the price mechanism solve the problem of what to produce of a free enterprise economy?
The forces of demand and supply regulated by price helps producers and resource owners solve the problem of what to produce
In Which type of economy does the government decide what to produce how to produce and for whom to produce?
Controlled.
What to produce mixed economy?
You should produce mixed goods in a mixed economy.
What to produce in mixed economy?
You should produce mixed goods in a mixed economy.
What are the major problems of economy?
the main problem of economy is that there is sufficent amt. of goods & services &every 1 wants to use it to satisfy their greed which is unlimited from it the problem is how to use it to get the maximum profit from it & still leave it to for coming generation.
Who determines what goods to produce in the economy?
It is the demand and supply which determines the goods and services to produce in the economy.
What is the difference between traditional economy and market economy?
In a {Traditional Economy}, economic decisions are based on customs handed down from generation to generation. In a {Market Economy} individuals make their own decisions about what to produce how to produce it & for whom to produce it.
An economy where the government decides what to produce and how to produce it?
Controlled
Is planned economy the same as mixed economy?
china is centrally planned economy its means that all the things in china are occupies by china government. they will decide what to produce, where to produce, how to produce it also decides that in which quantity they has to produce the thing.
Why is what to produce a problem in every economy?
What to produce?There are two aspects of this problem--- firstly, which goods should be produced, and secondly, what should be the quantities of the goods that are to be produced. The first problem relates to the goods which are to be produced. In other words, what goods should be produced? An economy wants many things but all these cannot be produced with the available resources.Therefore, an economy has to choose what goods should be produced and what goods should not be. In other words, whether consumer goods should be produced or producer goods or whether general goods should be produced or capital goods or whether civil goods should be produced or defense goods. The second problem is what should be the quantities of the goods that are to be produced.Production of goods depends upon the use of resources. Hence, this problem is the problem of allocation of resources. If we allocate more resources for the production of one commodity, the re­sources for the production of other commodities would be less.
Explain what is meant by the basic economic problem?
Economic problem is the problem regarding allocation of limited resources for the production of alternative goods and services. in other words, economic problem is the 'problem of choice'. Since the resources are scarce and they have alternative uses, there arises the problem of choice regarding the use of these resources. The law of scarcity states that goods are scare because there are not enough resources to produce all goods that people want to consume. Thus, Economic Problem is the 'problem of relative scarcity' and the 'problem of choice' arising therefrom.The basic economic problems of an economy are given below:What to produce and how much to produce?How to produce?For whom to produce?Problem of fuller utilisation of resources.Problem of efficiency in utilisation of resources.Problem of economic growth.
What type of economy is it when people decide what to produce how much of it to produce and how much to charge for the product?
Free/market economy
