1.) Explain the What, How, For and Whom of the core economic choices that every

Question

1.) Explain the What, How, For and Whom of the core economic choices that every nation faces.

2.) Explain the 4 Types of Factors of Production (What are the 4 Factors of Production). Also, Give a personal example of each of the 4 Factors of Production.

3.) What is Opportunity Cost in economics (define Opportunity Cost)? Also, Provide Two examples of an Opportunity Cost.

4.) Explain The Production Possibilities Curve in economics and provide a personal example of a Production Possibilities Curve.

Explanation / Answer

1) These refer to the central problems of an economy. The problem of what to produce relates to the problem of choosing different goods and the quantities to produce with the available limited resources. For example the choice between producing war time goods or peace time goods.

How to produce refers to the choice of technique of production to be used. Idealy a production which could maximize output or minimize cost should be used. The economy thus chooses betwee labour intensive and capital intensive technique of production.

For whom to produce refers to the problem of functional distribution of income or national product among various sections of the society. Not everyone in the society can get suffocated incole to satisfy all their wants. This raises the problem of distribution of income.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.