GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What goods are to be produced?
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What quantities of goods are to be produced?
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Both (1) and (2)
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Neither (1) Nor (2)
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Detailed explanation-1: -The problem of ‘what to produce’ deals with the production of necessary goods that have demand in the economy which can be evenly distributed so that social as well as economic stability is maintained in the economy.
Detailed explanation-2: -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.
Detailed explanation-3: -The question for “How to produce?” is faced by the economy they should consider both labour intensive techniques as well as capital intensive techniques depending upon the availability of resources in the economy. Was this answer helpful?
Detailed explanation-4: -How to produce refers to the technique of production. The problem of choice emerges because there are more than one way of producing goods and services. Broadly there are two techniques of production : Capital intensive technique.