Question

Why does the problem of what to produce arise? Explain.​

Answer 1

Answer:

It arises because resources are scarce and have alternative uses. Since many goods and services can be produced form these resources, the problem is that which of these should be produced.

Answer 2

Answer:

It arises due to availability of alternative techniques of production. Broadly, the choice is between capital intensive techniques and labor-intensive techniques. The problem is that which one to employ.

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Explanation:

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