Question

Explain the problem of ‘for whom to produce’?

Answer 1

‘For whom to produce’ is the third problem of allocation of resources. This relates to the distribution of national products among the various individuals. It is true that sharing of national product is directly influenced by the income of an individual. People with higher income will definitely possess higher purchasing capacities.Therefore, for proper and equal distribution of goods and services, there should be equality of income among all the people of society.