Answer:
The central problem being "for whom to produce" basically throws light on the distribution mix of the final goods and services 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 entrepreneur.
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 to the needs of the lower section of the society, then it would produce more of normal rice and less of the graded rice.
On the other hand, if the economy decided to cater to the needs of the higher section of the society, then it would produce more of the graded rice and less of the normal rice.
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