Tag Archives | Economy

What are the central problems of an economy?

The problem of scarcity of resources which arises before an individual consumer also arises collectively before an economy. On account of this problem and economy has to choose between the following:

By |2011-04-11T07:16:48+00:00April 11, 2011|Economics|Comments Off on What are the central problems of an economy?

How does price-mechanism solve central problems in an economy?

In a capitalist economy, all the central problems are solved with the help of price mecha­nism. In such an economy, no individual or a firm deliberately tries to solve the central problems; all economic activities operate automatically and there is no conflict anywhere.

By |2011-04-11T07:16:48+00:00April 11, 2011|Economics|Comments Off on How does price-mechanism solve central problems in an economy?

Brief note on the features of a village economy

Economy signified the organisation and operation of economic activities in a region for the satisfaction of human wants. Economy could be of a village, of a district, of a country etc. When we study the activities of an economy, we mainly study the production, consumption and distribution of goods and services.

By |2011-04-10T07:11:44+00:00April 10, 2011|Economics|Comments Off on Brief note on the features of a village economy
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