In economics, the “how” or input question refers... | JAMB UTME - Economics - 2017

Question 1 Report

In economics, the “how” or input question refers to:

The problem of allocating scarce resources among competing uses

The way in which factors of production may be combined to produce output

The way in which a firm decides on its profit maximising rate of output

The problem of how output is distributed among individuals and groups in society.

Answer Details

The economic question of "how to produce" refers to, which techniques are to be adopted? This question is important because the choice of technique depends on the prices of the factors of production.

That is, if labour is cheap and capital is expensive, a labor-intensive technique would be considered and vice-versa. The prices of labour and capital are determined by the demand for and supply of labour and capital respectively.

Read lesson note on Factors Of Production And Their Theories (JAMB)

Read lesson note on Theory Of Production (WAEC)

Read lesson note on Market Structures (WAEC)

Factors Of Production And Their Theories

Theory Of Production

Market Structures

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In economics, the “how” or input question refers to:

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