For whom to produce
Topic: Scarcity, Choice and Economic Systems · NCERT: Class 12, Ch 1 "Introduction (Microeconomics)"
Meaning
"For whom to produce" is one of the three central problems of an economy. It asks how the goods and services produced should be shared among people. Who gets more and who gets less? Should everyone get a minimum amount of consumption? Should elementary education and basic health care be free for all? In a market economy, purchasing power decides the answer. Purchasing power means a person's ability to pay.
Example
Shoe makers produce cheap, durable school shoes for students and formal leather shoes for office-goers. They design each type for a group with its own needs and ability to pay. India's state also answers "for whom" through policy:
- the RTE Act 2009 makes elementary education free (ages 6–14);
- the NFSA 2013 guarantees minimum food;
- Ayushman Bharat (PM-JAY, 2018) gives basic health cover.
Don't confuse with
- What to produce: That problem decides which goods to make and in what quantities. "For whom" decides who receives them.