The extent to which economics can clarify and help seek solutions to society’s needs may be...
The extent to which economics can clarify and help seek solutions to society’s needs may be answered by investigating the two important issues in economics, the______ and_____ issues.
Homework Answers
The extent to which economics can clarify and help seek solutions to society’s needs may be answered by investigating the two important issues in economics, the What to produce? and How to produce? issues.
To solve the problem of scarcity in economics, two basic questions of what good or service to produce and how to produce that good or the service should be addressed. The producer has to produce the good or the service from which the society would need the most i.e. the society would gain the maximum utility from consumption and then the producer has to decide how should he allocate his limited resources to produce that good or the service. He has to decide the best combination of the factors of production so that he can efficiently produce the required good or the service for the society.
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