"What to produce" is a central problem that deals with which of the following questions?
(A) What technique of production to use?
(B) What type of goods to produce?
(C) Which income group to produce for?
(D) What quantity of goods to produce?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (B) and (D) only
The central problem of "what to produce" in economics focuses primarily on:
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(B) What type of goods to produce?: This refers to the decision on which goods and services should be produced based on consumer preferences and needs.
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(D) What quantity of goods to produce?: This involves determining the appropriate amount of goods to produce to meet demand effectively.