Every society has to decide which goods are to produced and in what quantities. Whether more guns should be produced or more butter should be produced; or whether more capital goods like machines, equipments, dams, etc. will be produced or more consumer goods such as bread will be produced. The society not only has to decide about what goods are to be produced, but it has also to decide in what quantities these goods would be produced. In a nutshell, a society must decide how much wheat, how many hospitals, how many schools, how many machines, how many meters of cloth, etc. have to be produced.
Yes, this problem arises in every economy because this problem is not only related to the individual, but it is also related to large society, large industries and government.