Question : The fundamental or central economic problem of every society is
Option 1: What to produce
Option 2: How to produce
Option 3: For whom to produce
Option 4: All of the above
Correct Answer: All of the above
Solution :
The correct answer is (d) All of the above
What to produce is the question of what goods and services should be produced in an economy. There are always more wants than there are resources to satisfy them, so societies must make choices about what to produce.
How to produce is the question of how goods and services should be produced. There are many different ways to produce a product, and each way has different costs and benefits. Societies must choose the best way to produce goods and services in order to be efficient and effective.
For whom to produce is the question of who should get the goods and services that are produced. In a market economy, the answer is determined by the prices of goods and services. In a command economy, the answer is determined by the government.
All of these questions are interrelated. The answer to one question will affect the answers to the others. For example, if a society decides to produce more cars, it will need to decide how to produce them and for whom to produce them. The answer to the "how" question will affect the cost of cars, which will affect the answer to the "for whom" question.
Related Questions
Trending Articles/News
