Every society much decide on what goods it will produce and how much of these it will produce.
In this process, the crucial decisions include:
- Whether to produce more of food, clothing and housing or to have more luxury goods.
- Whether to have more agricultural goods or to have industrial goods and services.
- Whether to use more resources in education and health or to use more resources in military services.
- Whether to have more consumption goods or to have investment goods.
- Whether to spend more on basic education or higher education.
