Concept:The basic economic problem of “what to produce” refers to choosing which goods and services an economy should produce with its limited resources.
Explanation:Every economy has limited resources, so it cannot produce all possible goods and services.
It must decide the types of goods and services to produce, such as food, clothing, education, or health care.
This choice is called the problem of “what to produce.”
The quantity of goods produced is a related but separate decision, and the combination of resources used belongs to “how to produce.”
Therefore, the option that best explains “what to produce” is the one about selecting which goods and services to produce.
Answer:C. Which goods and services to be produced