TOZZIBLINKZ
VIP Contributor
The problem of what to produce has been one of the major problems that have ended or obstruct business owners from maximizing their intention to produce more goods and services . This problem confront the society because it's arises mainly as a result of the fact that humans want are numerous relative to the available resources to satisfy them . It is undoubtedly right to say that human want and need cannot all be produced and so the need for resource allocation in order to meet the pressing need of the people must be considered .
In the course of deciding what to produce the producers normally must take into proper considerations the income or earnings of the consumers living or residing in the society . They must ask themselves several questions to know whether the consumers and customers will be able to purchase the goods and services they intend to produce . And if their answers to that question is yes they can go ahead to produce but if no they should not produce . Finally a type of economic system in a given society also determines the type and quantity of goods and services to be manufactured or produce . this is so true Because in a capitalist economy the prices system determines the type and quantity of goods and services that are to be produced as profit is major determinants of what to produce . whereas in a socialist economy the state control and direct the allocation of resources hence its decide what to produce with the sole aim of satisfying the ones of this whole citizen of the state or society .
In the course of deciding what to produce the producers normally must take into proper considerations the income or earnings of the consumers living or residing in the society . They must ask themselves several questions to know whether the consumers and customers will be able to purchase the goods and services they intend to produce . And if their answers to that question is yes they can go ahead to produce but if no they should not produce . Finally a type of economic system in a given society also determines the type and quantity of goods and services to be manufactured or produce . this is so true Because in a capitalist economy the prices system determines the type and quantity of goods and services that are to be produced as profit is major determinants of what to produce . whereas in a socialist economy the state control and direct the allocation of resources hence its decide what to produce with the sole aim of satisfying the ones of this whole citizen of the state or society .
