Question

The central problems of an economy is ___________.

• A. what to produce
• B. how to produce
• C. for whom to produce
• D. all the above

Answer 1

The correct option is D all the above

The central problems of an economy deals with the allocation of its scarce uses, having alternative uses, for production of goods. The central problems are outlined as:

• What to produce? Consumer goods or capital goods?
  
• How to produce? Using labour or capital intensive techniques?
  
• For whom to produce? Rich people or poor people