How can economic problem can be solved?

 

To solve the economic problem we can take four solution. They are:

Production: The word production is usually taken to mean the making of some physical object. Production takes place so that peoples want cart be satisfied. By using limited resources essential product have to produce.

Distribution: How or by which policy produced goods will be distributed among different people in the society. Some factor of production such as Land, Labor, Capital and enterprise and how is the distributed parts of the factor of production like rent, wage, interest and profit will be given another problem.

Exchange: Exchange means inter change of goods and services with in human society by money. How goods and services will be distributed among different peoples. What happens is that we sell our services for money (wages and salaries) and then use this money to buy the things which others have produced.

Consumption: Consumption describes the using up of goods and services in order to satisfy our wants. By using limited resources how we can get highest level of satisfaction, always we do that.