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When a society settles how the total output of goods and services will be shared among its members, it is solving the problem of:
AWhat to produce
BFor whom to produce
CHow to produce
DHow much to import
Answer & Solution
Correct answer: B. For whom to produce
1. Sharing output among members is a question of distribution.
2. Distribution of the 'national cake' is the 'for whom to produce' problem.
3. Hence this is 'for whom to produce'.
4. The choice of goods and the technique used are separate questions, eliminating the other options.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 1 Unit II "Basic Problems of an Economy and Role of Price Mechanism", p.1_
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