Question

Central problems of an economy is/are:

• A. Which goods should be produced and in how much quantity?
• B. What technique should be adopted for production?
• C. For whom goods should be produced?
• D. All of above

Answer 1

The correct option is D All of above

The central problems of an economy deal with the production of goods and services so that it can lead to profit maximization with the welfare of the people. It solves the basic question of what to produce, how to produce and for whom to produce by setting up an economic system .i.e. socialism, capitalism and mixed.