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Please explain what to produce,how to …

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Please explain what to produce,how to produce and for whom to produce

Posted by Mandeep Singh 6 years, 9 months ago

CBSE > Class 11 > Economics

1 answers

Music -Mania 6 years, 9 months ago

What to produce includes capital goods and consumer goods.Capital goods are needed for further production and future growth.Consumer goods are needed for present consumption. How to produce-It includes two techniques of production.Labour intensive and capital intensive. Labour intensive includes more and more labour and capital intensive requires more and more capital. For whom to produce-It includes two sections of society.The rich and the poor section.By producing goods for the poor,the profits of the producers would remain low.Low profit would mean low investment.implying low GDP growth.

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