Question on: JAMB Economics - 2024
The problem of "how to produce" in any economy is solved by
A
combining capital and labour intensive methods of production
B
adopting the least cost method of production
C
using capital intensive method of production
D
employing the services of a manager
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Correct Option: B
The fundamental economic problem of "how to produce" addresses the efficient allocation of resources to produce goods and services, selecting the most effective production methods.
- Least cost method: Businesses minimize production costs using inputs efficiently, solving the "how to produce" problem.
- Combining capital and labor: Part of the solution, determined by the least cost method.
- Capital-intensive method: May be useful, but not always optimal; the best method depends on costs and resources.
- Employing a manager: Managers help, but the core problem is choosing the production method and resource allocation.
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