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Which of the following best explains what to produce?

Economics
WAEC 2013

Which of the following best explains what to produce?

  • A. How much goods are to be produced
  • B. The combination of resources to be used
  • C. Which goods and services to be produced
  • D. How many wants are to be satisfied
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Correct Answer: Option C
Explanation

The problem of What to Produce involves selection of goods and services to be produced and the quantity to be produced of each selected commodity. Every economy has limited resources and thus, cannot produce all the goods.

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