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Dear student,
The primary reason for the central problems is the scarcity of resources. The resources in an economy are always scarce in relation to the wants that are unlimited. Moreover, the scarce resources have alternate uses.
The problem of ' for whom to produce' relates to problem of distribution of final goods and services in the economy. Every economy must decide the distribution of the goods and services among different sections in the economy.
Generally, every economy must decide on an optimal combination of the goods produced for rich and poor.
The primary reason for the central problems is the scarcity of resources. The resources in an economy are always scarce in relation to the wants that are unlimited. Moreover, the scarce resources have alternate uses.
The problem of ' for whom to produce' relates to problem of distribution of final goods and services in the economy. Every economy must decide the distribution of the goods and services among different sections in the economy.
Generally, every economy must decide on an optimal combination of the goods produced for rich and poor.