Explain the central problem of for whom to produce

1.	Explain the central problem of for whom to produce
Answer» This problem involves the distribution of produced goods and services to different groups of society.It sees whether to produce for more rich,less poor or less rich, more poor.<br>It means for people because we have unlimited wants and resources are limited. Ex- we buys clothes from market we check the quality of clothes. Assume that you are buying black pant from market you go many shops you find their black pant but you find the quality of good cloth.<br>This studies the problem of\xa0distribution of final goods and services or the problem of distribution of income.It has two aspects. The first aspect relates to\xa0personal distribution\xa0and the second aspect relates to\xa0functional distribution.Personal distribution refers to\xa0output/income share of individuals or households in society.Functional distribution refers to\xa0income share of different factors of production.Here, the problem is whether allocation of resources is\xa0promoting equality or not.Equality is a social virtue, and inequality may induce high saving, investment and hence\xa0high rate of growth.

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