Economics (Central Problems)

The problem of scarcity of resources that arises before an individual consumer also arises collectively before an economy. On account of this problem, the economy has to choose between the following:
(i) Which goods should be produced and in how much quantity?
(ii) What technique should be adopted for production?
(iii) For whom goods should be produced?
These three problems are known as the central problems or the basic problems of an economy. This is so because all other economic problems cluster around these problems.