Explain the central problem of 'how to produce' OR Explain in the central problem of the choice of products to be produced.

Explain the central problem of 'how to produce' OR Explain in the ce

1.	Explain the central problem of 'how to produce' OR Explain in the central problem of the choice of products to be produced.
Answer» <html><body><p></p>Solution :As there is the problem of choice, the economy has to decide which goods and services are to be produced. For <a href="https://interviewquestions.tuteehub.com/tag/example-978283" style="font-weight:bold;" target="_blank" title="Click to know more about EXAMPLE">EXAMPLE</a>, which of the consumer goods such as wheat, rice, <a href="https://interviewquestions.tuteehub.com/tag/cloth-919758" style="font-weight:bold;" target="_blank" title="Click to know more about CLOTH">CLOTH</a> are to be produced and which of the capital goods such as machines and tools are to be produced.When an economy has <a href="https://interviewquestions.tuteehub.com/tag/taken-659096" style="font-weight:bold;" target="_blank" title="Click to know more about TAKEN">TAKEN</a> a decision as to what goods or services to be produced, then it has to be about its <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a>. How much of consumer goods and capital goods are to be produced.For example, if an economy decides to produce rice and wheat within a given period with limited resources then it will have to use less of machineries.</body></html>