Question

“What to produce” is a central problem that deals with which of the following questions?

1) What technique of production to use?
2) What type of goods to produce?
3) Which income group to produce for?
4) What quantity of goods to produce?

Choose the correct answer from the options given below:

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

Answer 1

The Correct Option is B

The central problem of "What to produce?" in economics involves deciding which goods and services should be produced given the limited resources. This problem is mainly concerned with the following considerations: 

1) What type of goods to produce? This involves deciding the specific kinds of goods and services that should be produced to meet the needs and preferences of consumers.
2) What quantity of goods to produce? This involves determining the amount of each good or service to produce in order to satisfy consumer demand and achieve optimal resource allocation.

Therefore, the correct answer is: (B) and (D) only as they directly pertain to the types of goods and the quantities required in the production decision.

Answer 2

The "what to produce" problem in economics revolves around the decision of what goods and services should be produced in an economy. This decision is central to any economic system, as it determines which products should be prioritized and in what quantities, based on consumer demand and available resources.

The choice of "what to produce" depends on various factors, including market needs, resource allocation, and societal preferences. Producers must assess the types of goods to produce and the quantities required to meet the demand of consumers in the market.

Other questions such as "what technique to use" or "for whom to produce" address different aspects of production. These fall under the "how to produce" and "for whom to produce" categories, respectively, which focus on production methods and distribution to various groups in society.

Therefore, the correct answer is (B) for "how to produce" and (D) for "for whom to produce," as they deal with the practical aspects of implementing the production decisions made in response to the "what to produce" problem.