Match the following. List-I List-II a. Problem of resource allocation 1. How to produce b. Problem of choice of techniques 2. For whom to produce c. Problem of distribution of income 3. Scarcity d. Problem of choice 4. What to produce

The correct answer is: C. a-4, b-1, c-2, d-3.

• Problem of resource allocation (a) is the problem of deciding how to use scarce resources to produce the goods and services that people want.
• Problem of choice (d) is the problem of deciding what to produce, how to produce it, and for whom to produce it.
• Problem of choice of techniques (b) is the problem of deciding which production techniques to use.
• Problem of distribution of income (c) is the problem of deciding how to distribute the income generated by production.

Here is a brief explanation of each option:

• Problem of resource allocation (a) is the problem of deciding how to use scarce resources to produce the goods and services that people want. Resources are scarce because there is not enough of them to satisfy all human wants. This means that people have to make choices about how to use them. The problem of resource allocation is therefore the problem of deciding how to make these choices.
• Problem of choice (d) is the problem of deciding what to produce, how to produce it, and for whom to produce it. This is a complex problem because there are many different factors to consider, such as the needs of consumers, the availability of resources, and the costs of production.
• Problem of choice of techniques (b) is the problem of deciding which production techniques to use. This is a problem because there are many different ways to produce goods and services, and each method has its own advantages and disadvantages. The choice of technique can have a significant impact on the cost of production, the quality of the product, and the impact on the environment.
• Problem of distribution of income (c) is the problem of deciding how to distribute the income generated by production. This is a problem because there are many different ways to distribute income, and each method has its own advantages and disadvantages. The distribution of income can have a significant impact on the standard of living of different groups of people, as well as on the overall economy.