With the help of suitable example explain the problem of 'for whom to produce'

Explanation

This economic problem basically focuses on the distribution of final goods and serives produced. The distribution of the final goods and services is equivalent to the distribution of National Income (or National Product) among the factors of production such as land, labour, capital and entreprenur.
For instance, imagine an economy producing two goods-normal rice (priced at Rs 15/kg) and graded rice (priced at Rs 100/kg). If the economy decided to cater the needs of the lower section of the society, then it would produce more of normal rice and less of the graded rice. In such a case, the PPC curve will be as depicted in figure (ii). On the other hand, if the economy decided to cater the needs of the higher section of the society, then it would produce more of the graded rice and less of the normal rice. In such a case, the PPC curve will be as depicted in figure (i)