Question

"For whom to produce?" is a fundamental economic question that relates to the distribution of resources and goods in an economy. Which of the following pieces of information best answers this question?

A) Income and wealth distribution statistics within the society.
B) The total production capacity of the economy.
C) The number of producers and consumers in the market.
D) The natural resources available in the region.

Answer 1

The question "For whom to produce?" pertains to distribution of goods and resources, best answered by income and wealth distribution statistics. It involves understanding how goods and services are allocated among various groups in society. Correct option is A.

Step-by-step explanation:

The fundamental economic question of "For whom to produce?" addresses the issue of distribution of resources and goods within an economy. This relates to decision-making pertaining to the population segments that will receive the economy's output. The answer to this question is best summed up by Income and wealth distribution statistics within society, which reflects how resources and products are allocated among various groups based on purchasing power or directives in the case of a command economy.

Markets, driven by demand and supply, generally determine distribution in market economies, whereas command economies might allocate based on government plans. Thus, the question is fundamentally about equity and efficiency in resource allocation and how these impact overall societal welfare.