Question

What are the crucial decisions involved in ‘what to produce?’

Answer 1

Every society much decides on what goods it will produce and how much of these it will produce.

In this process, the crucial decisions include:

1. Whether to produce more food, clothing, and housing or to have more luxury goods.
2. Whether to have more agricultural goods or to have industrial goods and services.
3. Whether to use more resources in education and health or to use more resources in military services.
4. Whether to have more consumption goods or to have investment goods.
5. Whether to spend more on basic education or higher education.