Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which of the available technologies to adopt in the production of each of the goods ? The above question relates to which Central problem of the economy ?

Options:

Why to produce ?

What to produce ?

How to produce ?

For whom to produce ?

Correct Answer:

How to produce ?

Explanation:

The correct answer is option (3) : How to produce ?

The central economic problems are often summarized as follows:

1. What to produce ? - This question relates to the allocation of resources to produce various goods and services, addressing the issue of choice and selection among different products.

2. How to produce ? - This question pertains to the selection of production methods and technologies , aiming to achieve efficiency and effectiveness in the production process.

3. For whom to produce ? - This question addresses the distribution of goods and services among the population, considering factors such as income distribution and consumer access.