Read the two statements and choose the correct option.
I. The problem of what to produce also includes how much of each good to produce.
II. The problem of for whom to produce is about choosing the technique of production.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

I is true: deciding what to produce means deciding the goods and their quantities.
II is false: technique is 'how to produce'; 'for whom' is about distribution.

Ten questions from Central Problems & the PPC, at your own pace.

Ten questions from Central Problems & the PPC, at your own pace.

Read the two statements and choose the correct option.I. The problem of what to produce also includes how much of each good to produce.II. The problem of for whom to produce is about choosing the technique of production.