Question

The problem of “What to produce?” includes which of the following considerations?
• [(A)] Whether to produce more of food, clothing, and housing or luxury goods.
• [(B)] Whether to allocate more resources to education or military services.
• [(C)] Whether to use labour-intensive or capital-intensive production methods.
• [(D)] Whether to focus on consumption goods or investment goods. Choose the correct answer from the options below:

• A. (A), (B), and (D) only
• B. (A), (C), and (D) only
• C. (B), (C), and (D) only
• D. (A), (B), (C), and (D)

Hint:

Central problems of an economy: \[ \mathrm{What\ to\ Produce} \] \[ \mathrm{How\ to\ Produce} \] \[ \mathrm{For\ Whom\ to\ Produce} \]

Answer 1

The Correct Option is A