JAMB - Economics (2006 - No. 19)
A decision on input combination solves the economic problem of
how to produce
for whom to produce
when to produce
what to produce
Erläuterung
The economic problem of "how to produce" addresses the question of the methods and resources to be used in the production of goods and services. A decision on the input combination (i.e., which resources to use and how to combine them efficiently) directly solves this issue, as it determines the methods of production. This can involve choices about technology, labour, capital and materials.