What are the central problems of an economy?  What are the causes and solutions to the Central problem of an economy?

In an economy, three economic problems are most commonly witnessed. They are:

1. What to produce: under what to produce, the necessary consumer goods are essential for raising the standard of living. This makes the human race stronger and develops a more advanced society. The production of capital goods is also necessary for the future growth and development of a country.
2. How to produce: In this case how to produce discusses the production process which should be labour intensive or should be a capital intensive technique. If the labour intensive technique is adopted it promotes employment, but the efficiency in production will suffer. The capital intensive technique does not promote employability but increases the rate of production. 
3. For whom to produce: for whom to produce is a problem of choice between social equality and GDP growth. Limited resources don't permit the production of goods for all sections of the society to the extent desired. If GDP growth is to be promoted, social justice or equality is to be sacrificed. And if social justice is promoted GDP growth needs to be sacrificed to a certain extent.

Certain causes to these problems of an economy are: 

• Unlimited human want
• Limited economic resources
• Alternative use of resources

The solution to the central problems of an economy are:

• For what to produce the producers will produce those goods that can have a greater profit margin and offer them high returns.
• In the case of how to produce the producers will always engage technology that maximises the rate of production and minimises the per-unit cost.
• For whom to produce the producer will produce goods for those who can afford it (in case of a free economy). Poorer sections are often ignored, which causes a gulf between the rich and poor sections of the society.