Identify the central problem which deals with deciding the quantity of

1.	Identify the central problem which deals with deciding the quantity of goods to be produced:
Answer» What of Produce How to Produce For whom to Produce None of these. Solution :A. The PROBLEM of ‘What to produce’ has two aspects:(i) What possible COMMODITIES to produce: An economy has to decide, which consumer goods (rice, wheat, clothes, etc.) and which of the capital goods (machinery, equipment’s, etc.) are to be produced. In the same way, economy has to make a CHOICE between civil goods (bread, butter, etc.) and war goods (guns, tanks, etc.).(ii) How much to produce: After deciding the goods to be produced, economy has to decide the quantity of each commodity that is selected. It means, if involves a decision REGARDING the quantity to be produced, of consumer and capital goods, civil and war goods and so on.

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