Whether to use more resources in education and health or to use more resources in building military services. Which of the central problems of an economy is accurate for this?

What to produce?

The correct answer is Option (2) → What to produce?

The decision of whether to use more resources for education and health or for military services is a classic example of the central problem of an economy known as What to produce? This problem involves choosing which goods and services to produce and in what quantities, given that resources are scarce. The decision reflects the fundamental trade-offs an economy must make regarding the allocation of its limited resources.