Question

Which part of the ‘Central’ problems of an economy relates to the quantities of goods to be produced?

• A. For whom to produce?
• B. What to produce?
• C. How to produce?
• D. None of the above

Answer 1

The correct option is C

How to produce?

The decision regarding allocation of resources relates to the techniques of production to be employed in the production of goods and services, and hence ‘how to produce’ relates to the quantities of goods to be produced in an economy.