The document outlines the 3 basic economic problems: what to produce and in what quantities, how to produce goods, and for whom to produce goods. It discusses each problem in more detail. For the first problem, it notes that production depends on a society's priorities and preferences, and that choosing consumer or capital goods now impacts the future. For the second problem, it states production depends on available resources and the type/quantity of goods. For the third problem, it explains that income distribution determines who can buy what goods.

1. Economic
Problems
Presented by: Vareesha Ali
Presented on: 20/1/17

2. The 3 basic Economic
Problems
There are 3 basic economic problems:
• What to produce & in what quantities?
• How to produce goods?
• For whom to produce goods?

3. What to produce and in
what quantities?
• Deciding the nature of goods
• Determining their quantity
• Production depends upon society’s priorities and
preferences
• If the society gives priority to the production of more
consumer goods now, it will have less in the future
• A higher priority on capital goods implies less consumer
goods now and more in the future

4. How to produce the
goods?
• Deciding the techniques or methods to be used in order
to produce the required goods
• Primarily dependent upon the availability of resources
within the economy
• The technique to be used also depends upon the type
and quantity of goods to be produced
• Allocating the resources while keeping in mind their
scarcity
• What goods and services are to be produced in the
public sector and what in the private sector

5. For whom are the goods
produced?
• Distribution of income determines who will be getting
what
• Whosoever possesses the means to buy the goods may
have them
• A rich person may have a large share of the luxurious
goods, and a poor person may have more quantities of
the basic consumer goods he needs

6. Thank you.