Introduction:
The central problem of an economy refers to the scarcity of resources in relation to unlimited wants and needs. This problem gives rise to three fundamental questions: what to produce, how to produce, and for whom to produce. Finding solutions to these questions is crucial for the efficient functioning of an economy.

Solutions:

1. Allocation of Resources:
The first solution to the central problem of an economy is the allocation of resources. This involves determining what goods and services should be produced. This decision is made based on the needs and wants of the consumers, as well as the availability of resources. The government and market forces play a significant role in determining the allocation of resources.

2. Production Methods:
The second solution to the central problem is determining the most efficient methods of production. This involves deciding how goods and services should be produced. Factors such as labor, capital, and technology are considered in determining the production methods. The aim is to maximize output while minimizing costs.

3. Distribution of Goods and Services:
The third solution to the central problem is the distribution of goods and services. This involves deciding who gets to consume the produced goods and services. Different economic systems have different approaches to distribution. In a market economy, distribution is determined by the forces of supply and demand. In a command economy, the government decides how goods and services are distributed.

4. Price Mechanism:
The price mechanism is another solution to the central problem. It is a market-based system where prices are determined by the interaction of supply and demand. Prices act as signals to producers and consumers, guiding them in their economic decisions. The price mechanism helps in the efficient allocation of resources and ensures that goods and services are produced according to consumer preferences.

5. Economic Planning:
Economic planning is a solution to the central problem that involves the government's intervention in the economy. Through economic planning, the government sets goals and targets for production, distribution, and consumption. It helps in coordinating economic activities and ensuring the efficient utilization of resources.

Conclusion:
The central problem of an economy can be addressed through various solutions. These include the allocation of resources, determining production methods, distribution of goods and services, the price mechanism, and economic planning. These solutions aim to ensure the efficient functioning of an economy and meet the needs and wants of the society. By considering these solutions, economies can strive towards achieving optimal resource allocation and maximizing overall welfare.