Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which of the following is not a central problem of an economy ?

Options:

What to produce more?

How much of which resource to be used ?

How to increase resources ?

Distribution of final produce among the individuals

Correct Answer:

How to increase resources ?

Explanation:

The correct answer is option (3) : How to increase resources ?

The central problems of an economy, often referred to as the fundamental economic questions, revolve around resource allocation and scarcity. They include:

1. What to produce?
2. How to produce?
3. For whom to produce?

From the options provided:

- "What to produce more?" relates to the first central problem of an economy: What to produce?
- "How much of which resource to be used?" relates to the second central problem: How to produce?
- "Distribution of final produce among the individuals" relates to the third central problem: For whom to produce?

The statement "How to increase resources?" is not typically considered one of the central problems of an economy. It pertains more to the issue of resource availability or resource augmentation, which is a broader concern beyond the scope of the fundamental economic questions.