1.
‘What to Produce’ is a problem
related to the selection of goods and services to be produced.
2.
An economy has to decide whether to produce consumer
goods such as rice, wheat, clothes, etc.
or to produce capital goods such as machinery and equipment.
3.
T has also to make a choice between necessary goods
and luxury goods.
4.
The scarcity of resources limits the production of
goods and services in an economy.
