Question

The problem of what goods and services are produced and how much, is covered by the general term ________.

• A. resource allocation
• B. choice of technique of production
• C. distribution
• D. macroeconomics

Answer 1

The correct option is A resource allocation

The problem of what goods and services are produced and how much, is covered by the general term Resource Allocation. Allocation of resources refers to the problem of assigning the scarce resources in such a manner so that the maximum wants of the society are fulfilled. As the resources are limited in relation to the unlimited wants, it is important to economize their use and utilize them in the most efficient manner.