The correct answer is C. How to maximize private profit.
The central problems of an economy are what to produce, how to produce, and for whom to produce.
- What to produce: This refers to the goods and services that an economy should produce. The answer to this question depends on the needs and wants of the people in the economy.
- How to produce: This refers to the methods that an economy should use to produce goods and services. The answer to this question depends on the available resources and technology.
- For whom to produce: This refers to who should benefit from the goods and services that an economy produces. The answer to this question depends on the economic system in place.
Maximizing private profit is not a central problem of an economy because it is not always the best way to allocate resources. In some cases, it may be more efficient to produce goods and services that are not profitable, but that are needed by the people in the economy. Additionally, maximizing private profit can lead to inequality, as the wealthy are able to accumulate more and more wealth.
In conclusion, the central problems of an economy are what to produce, how to produce, and for whom to produce. Maximizing private profit is not a central problem of an economy because it is not always the best way to allocate resources and can lead to inequality.