4 basic economic problems powerpoint presentation

economics ppt

1. ECONOMIC AS AN APPLIED SCIENCE https://www.freeppt7.com

2. WHAT TO PRODUCE? 01 HOW TO PRODUCE? 02 FOR WHOM TO PRODUCE? 03 WHAT PROVISIONS SHOULD BE MADE FOR ECOCNOMIC GROWTH? 04 4 BASIC ECONOMIC PROBLEMS

3. This implies that society has to decide which goods and in what quantities are to be produced, “Guns or butter” has been the popular way of describing this dilemma of choice posed by the scar­city of resources. WHAT TO PRODUCE?

4. But this choice between war goods and goods for civilian consumption is not the only problem of choice faced by the society. The society has to choose among hundreds of consumer goods themselves and decide about allocation of resources between them. Of special mention in this regard is the choice between necessities and luxuries. WHAT TO PRODUCE?

5. Further, an important choice about the pro­duction of goods and resource allocation is to decide about what amounts of consumer goods and capital goods are to be produced. As shall be made clear later, this decision about the allocation of resources between consumer goods and capital goods is of crucial importance from the point of view of economic growth. WHAT TO PRODUCE?

6. Society has to decide not only the relative amounts of consumer and capital goods to be pro­duced but it has also to determine the specific quantity of each type of capital good and each type of consumer goods.  WHAT TO PRODUCE?

7. More generally, in answering the question what goods shall be produced, society would have to choose somehow or other among scores of goods such as cars, hospitals, schools, houses, radios, televisions, nuclear bombs, wheat , rice, cloth, machinery, steel, soap, lipsticks, terylene, nylon, etc. But this decision is only half the battle. WHAT TO PRODUCE?

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