Question

Choice between "production for the poor" or "production for the rich" refers to:

• A. How much to produce?
• B. For whom to produce?
• C. What to produce?
• D. When to produce?

Hint:

"For whom to produce?" decides the target market—poor or rich—in economic planning.

Answer 1

The Correct Option is B

The question of "production for the poor" or "production for the rich" pertains to the fundamental economic problem of for whom to produce, which involves determining the target market or beneficiaries of goods and services. This decision influences how resources are allocated and who benefits from production (e.g., affordable goods for low-income groups vs. luxury goods for high-income groups). The other options are distinct:
- How much to produce? (option 1) addresses the quantity of output.
- What to produce? (option 3) focuses on the type of goods or services.
- When to produce? (option 4) deals with the timing of production.
Thus, option (2) is correct, as it directly relates to the target audience of production.

Answer 2

Using the three basic economic questions framework:
Every economy must answer three central questions: what to produce (which goods/services), how to produce (which techniques/resources), and for whom to produce (who receives the output). "Production for the poor" versus "production for the rich" is not about the type of good itself (that would be "what"), nor about production technique ("how"), nor about timing ("when", which is not even one of the three classical questions). It is specifically about deciding the intended beneficiaries or target consumers of output, i.e., the distribution of goods across income groups. This directly maps onto the "for whom to produce" question, confirming option (2).