Economic system muct be able to accomplish and answer three
questions:
- What to produce: Economic production system must be able to
answer what to produce such that they they can efficiently utilize
their resources and produce maximum output possible.
- How to produce: It refer to the inputs used by producer which
means that producer either use labor, capital intensive technology
or a maxiture of both.
- For whom to produce: It refers that for which section of
economy, producer must produce goods i.e. poor or rich
section.