Which one is not the central problem of the economy?

The correct answer is Option (3) → Where are these goods produced?

Every economy faces three central problems due to the scarcity of resources:

1. What to produce and in what quantities? — deciding which goods and services to produce.

2. How to produce? — deciding the method of production (labour-intensive or capital-intensive).

3. For whom to produce? — deciding how the output will be distributed among people.

The location of production — “Where are these goods produced?” — is not a central problem of the economy.