How efficiently are the Resources being utilised?
This is one of the most relevant basic problems of an economy because having made the earlier decisions, the society has to see whether the resources it owns are being utilised fully or not fully utilized. If the resources of the economy are lying idle, it has to find out ways and means to utilise them fully. If the idleness of resources, say manpower, land or capital, is due to their male allocation, the society will have to adopt such monetary, fiscal, or physical measures that's the possibility happened. Its Good to make it sure if the sources are growing constantly.
The production possibility curve PP reflects idle resources within the economy at point A, while the production possibility curve P1P1 reflects the full utilisation of the resources at point В or C. It is for the society to decide whether to produce more capital goods at point В or more consumer goods at point C, or both at point D at the level of full employment represented by the P1P1 curve. It's important to know within the community that the resources are being utilised or if not, cause that is our own resources that need to addressed to make it utilised.