Question

What are the central problems relating to allocation of resources?

• 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 problem of choice or the problem relating to allocation of resources deals with 3 aspects:

1)What to produce- Resources are to be used for producing what goods and services.

2)How to produce- What methods are to be used for the production.

3)For whom to produce- Who will utilize the goods and services.