Introduction

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• Questions
• Summary

Central Problems of an economy are mainly divided into three categories:

1. Problem of allocation of recourses
   i. What to produce & How to produce?
   ii. How to produce?
   iii. For Whom to produce?
2. Fuller utilization of resources.
3. Growth of resources of economic development. 

The “for whom” problem concerns with the distribution of income and wealth.

The “how” problem refers to the choice of methods of production of goods and services.

The “what” problem refers to which goods and services will be produced in an economy and in what quantities.