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The problem of 'What to produce' covers the issue relating to:

Answer» <html><body><p>What gods are to be produce <br/>What quantities of good to be produced <br/>Both (a) and (b) <br/>Neither (a) nor (b) </p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :C. This problem involves selection of goods and services to be produced and the quantity to be produced of each <a href="https://interviewquestions.tuteehub.com/tag/selected-3017558" style="font-weight:bold;" target="_blank" title="Click to know more about SELECTED">SELECTED</a> commodity. Every <a href="https://interviewquestions.tuteehub.com/tag/economy-21801" style="font-weight:bold;" target="_blank" title="Click to know more about ECONOMY">ECONOMY</a> has limited resources and thus, cannot produce all the goods. More of one good or service usually means less of others.For example, production of more sugar is <a href="https://interviewquestions.tuteehub.com/tag/possible-592355" style="font-weight:bold;" target="_blank" title="Click to know more about POSSIBLE">POSSIBLE</a> only by reducing the production of other goods. Production of more war goods is possible only by reducing the production of <a href="https://interviewquestions.tuteehub.com/tag/civil-2779" style="font-weight:bold;" target="_blank" title="Click to know more about CIVIL">CIVIL</a> goods. So, on the basis of the importance of various goods, an economy has to decide which goods should be produced and in what quantities. This is a problem of allocation of resources among different goods.</body></html>


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