Question

Discuss the three fundamental problems (what, how and for whom) of economics.

Answer 1

What to produce depends on various reasons prevailing in the market . For instance , what the market consumes and what quantity is needed to satisfy the market .

Explanation:

Overproduction of commodities is associated with overexploitation of resources which is snot good for the economy. Therefore , it is possible to have lower consumption for the sake of future consumption.

How to produce commodities requires the technical know how and the right technology for production .Once the market has decided what to produce and in what quantity , the skill for production will be considered .Different production methods will result in the production of different goods .It depends on the supply factors .

For whom to produce to focuses on the problem of the consumption .It evaluates the consumption patterns .The distribution of products depends on the distribution of the income among the people .It dictates their purchasing power for commodities .It tries to solve the inequality problem in a society .