Q.13 Which of the following central problem of an economydeals with the distribution of national income? *
(a) How to produce
(b) What to produce
(c) For whom to produce
(d) None of the above
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The capacity of people to pay for goods depends upon their level of income. It means, this problem is concerned with distribution of income among the factors of production (land, labour, capital and enterprise), who contribute in the production process.
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Answer:
(b) What to produce
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