The problem for whom to produce refers to selection of the category of people who will ultimately consume the goods. Since resources are scarce in every economy, no society can satisfy all the wants of its people. Thus, a problem of choice arises. The economic problem of 'For whom to Produce' basically focuses 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.

The problem can be categorised under two main heads:
(i) Personal Distribution: It means how national income of an economy is distributed among different groups of people.
(ii) Functional Distribution: It involves deciding the share of different factors of production in the total national product of the country. Guiding Principle of ‘For whom to Produce’: Ensure that urgent wants of each productive factor are fulfilled to the maximum possible extent.

Production Possibility Curve (PPC) will be concave to the origin because of the increasing
opportunity cost. As we move down along the PPC, to produce each additional unit of Good
X, more and more units of Good Y needs to be sacrificed. That is, as we move down along
the PPC, the opportunity cost increases. And this causes the concave shape of PPC.

As initially, the production in the economy is below its potential due to unemployment, this suggests that the economy is operating at a point below the Production Possibility curve (PPC). As the government starts employment generation schemes, the unemployed resources get utilized. In a situation of full employment the economy would move to a point on the PPC. Hence, economic value is reflected in terms of increased output and income.

Production possibility curve is a graphical representation of the maximal mix of outputs
that an economy can achieve using its existing resources to full extent and in the most
efficient way. The mission of 'Clean India Mission' (Swachh Bharat Mission) will lead to
better waste-management technique. Consequently it leads to healthy India and increased
individual productivity. Both these factors will lead to better and efficient utilisation of
existing resources of an economy. Accordingly, the economy will move higher and closer
to initial PPC. This movement is being depicted in the below graph with the help of the
arrow from point P.

OR

The large scale outflow of foreign capital will lead to a decrease in the availability of
resources, thereby shifting the Production Possibility Curve (PPC) from right to left that is
from AB to CD as shown in the following diagram. Hence, we can say that leftward shift of
PPC results in fall in output and resources.

As initially, the production in the economy is below its potential due to unemployment, this suggests that the economy is operating at a point below the Production Possibility curve (PPC). As the government starts employment generation schemes, the unemployed resources get utilised. In a situation of full employment the economy would move to a point on the PPC.
Consider the example of the economy producing two goods- consumer goods and capital goods. Suppose AB is the Production Possibility Curve (PPC) depicting full-employment of resources.

Initially, suppose the economy is at point I (which is below the PPC) where, the economy is below the potential level. As employment in the economy rises, the economy starts moving at a point towards the PPC. At full employment, it will reach a point on the PPC such as point D.