ECONOMICS (CBSE/UGC NET)

ECONOMICS

OPPORTUNITY COST

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ happened during WWII when American citizens were only allowed to have certain amounts of specified goods.
A
opportunity costs
B
rationing
C
reallocation
D
alternative
Explanation: 

Detailed explanation-1: -Even though thousands of items became scarce during the war, only those most critical to the war effort were rationed. Key goods such as sugar, tires, gasoline, meat, coffee, butter, canned goods and shoes came under rationing regulations. Some important items escaped rationing, including fresh fruit and vegetables.

Detailed explanation-2: -It believed that with factories converting to military production and consuming many critical supplies, rationing would become necessary if the country entered the war. The OPA established a rationing system after the attack on Pearl Harbor on 7 December.

Detailed explanation-3: -People started to panic buy in a manner similar to recent times as in the petrol or Covid crisis. So, the Government introduced rationing as a fair system to allow people to have a certain amount of food each week. Other countries involved in the war such as America had rationing too.

Detailed explanation-4: -In January 1940, the British government introduced food rationing. The scheme was designed to ensure fair shares for all at a time of national shortage. The Ministry of Food was responsible for overseeing rationing. Every man, woman and child was given a ration book with coupons.

There is 1 question to complete.