Two friends Reena and Meena were discussing. Reena said, 'Every society must decide on how much of each of the many possible goods and services it will produce. Whether to produce more of food, clothing, housing or to have more of luxury goods.'
There are 3 central problems of an economy.
1. What to produce and in what quantities?
2. How to produce?
3. For whom to produce?
Which problem is Reena talking about in the above statement?

About 1

The Correct Answer is option 1: About 1 -What to produce and in what quantities?

Reena is discussing the first central problem of an economy, which is "What to produce and in what quantities?" She mentions the decision-making process regarding the allocation of resources among different goods and services, such as food, clothing, housing, and luxury goods.