Question

5. Describe briefly the problem of 'what to produce'.

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Answer 1

Answer:

This problem has two dimensions :

What goods and services are to be produced.

In what quantity these goods and services are to be produced.

The problem becomes complex when the choice is to be made across capital goods and consumer goods.

The economy struggles with another aspect problem:of how much of consumer goods and how much of capital goods.

Answer 2

Answer:

The central problem of "what to produce?" which is faced by the economy where the economy decides the goods that needs to be produce in the economy wether consumer or capital goods to satisfy human wants keeping in mind the available resources and state of technology in the economy.

Explanation:

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