Nisha wants to start her own business in the food industry. She is in a dilemma whether she should hire workers or use machines for production. Which central problem of an economy is involved in this situation?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → How to produce
Nisha must choose between more labour or more machines. That is a choice of method, the problem of how to produce.
Option (1) For whom to produce — Incorrect. ‘For whom’ is about who gets the goods once they are produced.
Option (2) What to produce — Incorrect. ‘What’ is about which goods and how much. She has already chosen food.
Option (3) How to produce — Correct. Workers or machines is a choice of technique.
Option (4) What price to charge — Incorrect. The three central problems are what, how and for whom to produce. Setting a price is not one of them.
NCERT (2026-27): “How are these goods produced? Every society has to decide on how much of which of the resources to use in the production of each of the different goods and services. Whether to use more labour or more machines. Which of the available technologies to adopt in the production of each of the goods?” “For whom are these goods produced? Who gets how much of the goods that are produced in the economy? How should the produce of the economy be distributed among the individuals in the economy? …” |