What are the basic economic problems?

Following are the basic economic problems:

a. What to produce?

It depends upon the type of resources available and the needs and wants of people in the economy combined with their skill set and competencies to produce those goods.

b. How to produce?

An economy should decide what kind of technology to use, should it be labour intensive or machine intensive. What combination would result in optimum utilization of resources must be identified and utilized.

c. For whom to produce?

This problem deals with the distribution of produced goods and services. An economy must strive for equilibrium and just distribution of wealth and resources which are scarce in nature.