Answer:
1. Producer would use the scarce factor in final goods less intensively.
2. Scarcity is 'shortage' which leads to problem of 'choice'. Hence arise the central problems - what, how, for whom to produce.
Explanation:
1. If a producer experiences shortage of one of the factors of production, he/she will use that factor comparatively less than the relatively abundant factor(s). This would imply that the final good would use the scarce resource less intensively.
2. Scarcity is the problem of unlimited wants with limited resources, having alternative choice. This arises the problem of 'choice', which further forms the 'central problems of economy' - what, how, for whom to produce. What to produce refers to choice of type & quantity of good to be produced. How to produce refers to choice of technique of production. For whom to produce refers to personal & factoral distribution of final output.
