Who gets how much in an economy is best described by which of the following central problems?

a)
What to produce

b)
For whom to produce

c)
How to produce

d)
None of these

Correct answer is option 'B'. Can you explain this answer?

Question

Who gets how much in an economy is best described by which of the following central problems?

a)
What to produce
b)
For whom to produce
c)
How to produce
d)
None of these

Correct answer is option 'B'. Can you explain this answer?

Answer

For whom to produce is a central problem in which we have to decide that production is to be done for rich or for poor...Because if we do production for rich people then it will increase profit of bussinessman and finally it will increase GDP but if we do for poor people it will decrease GDP but increase the feeling of equality in society...So we have to decide how much production is to be done and for which society or we have to decide who get more and who will less bcoz resources are limited and have alternate uses..

Answer

B.

Answer

Yes bcoz dis centrl prblm only describes which section of society gets how much as it is concerned with only for whom to produce whether for rich or poors

Answer

For whom to produce

In an economy, the question of 'who gets how much' refers to the distribution of goods and services among individuals or groups. This question is best described by the central problem of 'for whom to produce.'

Explanation:

The central problem of 'for whom to produce' focuses on the allocation and distribution of goods and services in an economy. It addresses the issue of how resources are distributed among different individuals or groups based on their needs, preferences, and purchasing power.

Scarcity of resources:

The concept of scarcity of resources is one of the fundamental economic principles. It states that resources are limited, while human wants and needs are unlimited. As a result, choices have to be made to allocate these scarce resources efficiently. While scarcity is a significant factor in determining the allocation of resources, it does not directly answer the question of who gets how much.

What to produce:

The central problem of 'what to produce' focuses on determining the types and quantities of goods and services to be produced in an economy. It involves making choices regarding what goods and services are considered valuable and necessary for the well-being of society. While the decision of what to produce indirectly affects the distribution of resources, it does not directly address the question of who gets how much.

How to produce:

The central problem of 'how to produce' deals with the choice of production techniques and methods to utilize resources efficiently. It involves decisions related to the combination of labor, capital, and technology in the production process. While the choice of production methods may impact the efficiency and cost of production, it does not directly determine the distribution of goods and services among individuals or groups.

Conclusion:

The question of 'who gets how much' in an economy is best described by the central problem of 'for whom to produce.' It focuses on the distribution of goods and services among individuals or groups based on their needs, preferences, and purchasing power. This central problem addresses the allocation of resources in a way that ensures fairness and efficiency in the distribution process.

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