A very momentous question that can be asked about the working of an economy is:
- Are the resources being used efficiently?
- Is the utilization of the resources done correctly?
Since Resources are rare, it is definitely fascinating that they must be most methodically used, i.e.,
- The manufacturing and circulation of the national commodity should be done precisely.
- Production is called to be adequate, if it is not achievable to manufacture more than one good without contracting the result of other items in the economy.
- The circulation is adequate if it is not desirable to make anyone person/persons better off without creating any other person/persons worse off through any recirculation system.
