Microeconomics: Introduction · Class 11 · CBSE · Commerce Economics

An economy must decide whether scarce land should be used to build a hospital or a shopping complex. Which central problem of an economy does this de…

Practice question from Microeconomics: Introduction (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.

easy · MCQ · Q-7AEE9C

An economy must decide whether scarce land should be used to build a hospital or a shopping complex. Which central problem of an economy does this decision primarily address?

  1. A.What to produceCorrect answer
  2. B.How to produce
  3. C.For whom to produce
  4. D.How to eliminate all wants

Solution

The decision concerns the choice of goods or services to be produced with scarce resources. Therefore, it represents the central problem of what to produce.

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