ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

When there is not enough of something that people need, such as food or water, what word describes what the government might do in order for as many people as possible to get what they need?

A	gouging
B	allocation
C	demand
D	None of the above

Explanation:

Detailed explanation-1: -The government deals with scarcity by placing its resources and funding to those who need it most.

Detailed explanation-2: -Causes of Economic Scarcity Growing demand and inadequate supply and corresponding economic shortage. Decline in supply due to economic or environmental reasons. Unequal distribution of natural resources creates a scarcity of specific resources in certain places. Government intervention.

Detailed explanation-3: -The correct option is: b. Consumers must pay higher prices for many items. Explanation: Scarcity is described as circumstances where the wants and requirements of people are limitless, but the resources allocation is limited.

Detailed explanation-4: -Things that are scarce, like gold, diamonds, or certain kinds of knowledge, are more valuable for being scarce because sellers of these goods and services can set higher prices.

There is 1 question to complete.