• JP Williams Fundamental Economic Problems
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    Fundamental economic problems are

    1) What to Produce:
    This arises directly out of scarcity of resources among alternative uses. Should the resources be used in production of consumer goods or capital goods. So the problem is what to commodities produce and in what quantities.

    2) How to Produce:
    Most goods can be produced in more that one ways using resources in different combinations. Which resources and technical process will be employed to produce these goods and services? So the problem after determining what to produce is by what methods are these commodities produce?

    3) For Whom to Produce:
    How is the society to allocate the goods and services produced when the supply is never able to satisfy total demand. Who is to receive what share of the economic goods and services. So the questions is for whom shall the goods and services be produced? Is the rich or the poor?

    These questions are of importance because an economic system is often judged by the way in which it distributes its goods and services. it is also a question of direct concern to each of us because the answer determines not only the nation's well being but our individual standard of living as well.
    21 August 2010Comment
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    • fabulous 4 real gud one dats is d answer straight away
      Like It0 Unlike It0 24 February 2012