Explain the Central problem for whom …
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Posted by Sujal Dahal 2 years, 10 months ago
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Preeti Dabral 2 years, 10 months ago
The central problem of “for whom to produce” refers to the selection of the category of the people who will ultimately consume the goods., i.e, whether to produce goods for poorer and less rich or richer and less poor. Since resources are scarce in every economy, no society can satisfy all the wants of its people. Thus, a problem of choice arises. Goods are produced for those people who have the paying capacity. The capacity of people to pay for goods depends upon their level of income. It means this problem is concerned with the distribution of income among the factors of production(land, labour, capital and enterprise) who contribute to the production process. Income is distributed in the form of wages,rent, interest and profit.
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