Economics (What to Produce-2)

The priority has to be made between consumer or producer goods; or general or capital goods; or civil goods or defense goods. The second problem is what should be the quantities of the goods that are to be produced. Production of goods depends upon the use of resources. Hence, this problem is the problem of allocation of resources. If we allocate more resources for the production of one commodity, the resources for the production of other commodities would be less.