“Choice of technique” refers to the central problem of "HOW TO PRODUCE" that relates to the central issue of which technique of production should be employed to produce a good. The problem is to use capital intensive technique or labour intensive technique for the production of goods in the economy.

Detailed Answer : This problem is concerned with the distribution of income in an economy. It is concerned with either to produce goods for high income groups or low– income groups. The capacity of people to pay for goods depends upon their level of income. Thus, this problem is concerned with distribution of income among factors of production who contribute in the production process.

It has two aspects :

(i) Personal distribution : It means how national income of an economy is distributed among different groups of people in the society.

(ii) Factoral distribution : It relates to income share of different factors of production such as wages for labour, interest for capital, rent for land etc.