ECONOMICS
PRODUCTIVE RESOURCES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
for whom to produce, what to produce, and which resources to produce.
|
|
|
for whom to produce, how to produce, and what to produce.
|
|
|
how to produce, and which resources to produce.
|
|
|
when to produce which resources.
|
Detailed explanation-1: -Answer. Because scarcity exists, any strategy for allocating scarce resources must address for whom to produce, how to produce, and what to produce. Thus option B is correct.
Detailed explanation-2: -MARKET SYSTEM: A market system is the most common method of allocating scarce resources in the United States. In this system, the worth of goods and services is determined by private buyers and sellers.
Detailed explanation-3: -Societies can deal with scarcity by increasing supply. The more goods and services available to all, the less scarcity there will be. Of course, increasing supply comes with limitations, such as production capacity, land available for use, time, and so on. Another way to deal with scarcity is by reducing demand.
Detailed explanation-4: -Scarcity is one of the key concepts of economics. It means that the demand for a good or service is greater than the availability of the good or service. Therefore, scarcity can limit the choices available to the consumers who ultimately make up the economy.
Detailed explanation-5: -Scarcity brings about the problem of allocation because, by definition, what is scarce is available in quantities less than the desired use of that resource. In order to deal with scarcity, a resource must be rationed in some way.