Which of the following is the best example of "what goods and services should be produced?"
A)the use of a capital intensive versus a labor intensive process of manufacturing textiles
B)the production of SUVs versus the production of sub-compact cars
C)the manufacturing of computer workstations in China or in India
D)the leasing versus the purchasing of new capital equipment

Question

Quizplus · Accepted Answer

The decision between producing SUVs or sub-compact cars represents a choice of what goods should be produced, as both are consumer goods that serve a similar purpose (transportation) but have different features and appeal to different segments of the market. The other options all relate to production processes or capital management, which are more related to how goods can be produced efficiently rather than what goods should be produced.

Which of the Following Is the Best Example of "What