Which of the following relates to the problem of “How to produce”?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Which of the available technologies to adopt in the production of each of the goods

The problem of how to produce is about methods: how much of which resource to use, and which technology to adopt for each good.

Option (1) Whether to have more of consumption goods or investment goods — Incorrect. Consumption goods or investment goods is a choice of what to produce.

Option (2) Which of the available technologies to adopt in the production of each of the goods — Correct. Choosing a technology is a choice of method.

Option (3) Who gets more and who gets less — Incorrect. Who gets more and who gets less is the problem of for whom to produce.

Option (4) Whether elementary education should be available freely for everyone — Incorrect. Free elementary education for all is also part of for whom to produce.

NCERT (2026-27): “What is produced and in what quantities? … Whether to have more of basic education or more of higher education. Whether to have more of consumption goods or to have investment goods (like machine) which will boost production and consumption tomorrow.”

“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 more and who gets less? Whether or not to ensure a minimum amount of consumption for everyone in the economy. Whether or not elementary education and basic health services should be available freely for everyone in the economy.”