The economic question of "what to produce" is often referred to as the distribution question.
Which of the following cannot be determined from a nation's position relative to its production possibilities frontier? A) whether it is producing efficiently B) whether it has unemployed resources C) the opportunity cost of each good illustrated D) the society's relative preferences regarding each good illustrated E) the price of each good illustrated
Which economic question does the decision to produce butter instead of guns answer? A) What to produce? B) How to produce? C) For whom to produce? D) Who has a comparative advantage in gun production? E) Who has an absolute advantage in butter production?
If dairy farmers use automatic milking machines instead of milking by hand,which economic question does their decision answer? A) What to produce? B) How to produce? C) For whom to produce? D) Who has a comparative advantage in milking? E) What is the price of milk?