Question

Central problem of an economy consists of:

• A. How money should be spent by a particular household?
• B. Which goods should be produced and in how much quantity?
• C. What amount of goods should be produced by farmer?
• D. All of the above

Answer 1

Answer: (B)

Which goods should be produced and in how much quantity?

The central problems of an economy is related to the production of various commodities in the economy. It includes
1:what to produce? Consumer goods or capital goods?
2:How to produce? Using labour or capital?
3:For whom to produce? Rich people or poor people?