BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Higher the income, higher will be the buying capacity and higher will be his demand for goods in general.
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Higher the income, lower will be the buying capacity and higher will be his demand for goods in general
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Goods will be produced for those who do not have buying capacity
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income one will be able to make depends only on the amount of work he does
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Detailed explanation-1: -The fundamental economic problem is the issue of scarcity but unlimited wants. Scarcity implies there is only a limited quantity of resources, e.g. finite fossil fuels.
Detailed explanation-2: -The central problem of “for whom to produce?” which is faced by the economy where the economy decides the consumer i.e rich people or poor people of the goods and services that are produced in an economy with the given resources and state of technology that prevails in the economy.
Detailed explanation-3: -The scarcity of resources is regarded as the root cause behind central economic problems.
Detailed explanation-4: -Solution 2 The central problem for whom to produce is the problem of allocation of resources. This relates to the distribution of national products among the various individuals. It is true that sharing of national product is directly influenced by the income of an individual.