ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the profit earned by farmers
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he rent of the land on which food is grown
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the reduction in investment
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the wages of the farm workers
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Detailed explanation-1: -The government deals with scarcity by placing its resources and funding to those who need it most.
Detailed explanation-2: -Examples of economic problems include How to deal with external costs/pollution, e.g. pollution from production. How to redistribute income to reduce poverty, without causing loss of economic incentives. How to provide public goods (e.g. street-lighting) which are usually not provided in a free market.
Detailed explanation-3: -The four essential economic activities are resource management, the production of goods and services, the distribution of goods and services, and the consumption of goods and services.
Detailed explanation-4: -Because of resource scarcity, economic agents must make choices. Making choices not only applies to consumers but also businesses and governments.