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What are the key questions in economics?

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What are the key questions in economics?

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Solution

The key questions in economics arise because resources are limited while human wants are unlimited. Every economy has to decide what to produce, how to produce, and for whom to produce. “What to produce” means deciding which goods and services and how much should be produced. “How to produce” refers to choosing the methods and resources used in production. “For whom to produce” means deciding how the produced goods and services should be distributed among people. These questions help ensure the efficient use of scarce resources.

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Chapter 8: Building Blocks in Economics: The Problem of Choice - Intext Questions [Page 183-]

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NCERT Social Science Understanding Society India and Beyond Part 1 [English] Class 9
Chapter 8 Building Blocks in Economics: The Problem of Choice
Intext Questions | Q 2. | Page 183-
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