ECONOMICS (CBSE/UGC NET)

ECONOMICS

SCARCITY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
During war time, food was limited . In order for everyone to receive this food, the government distributed an assigned amount to be given out, This is an example of
A
Rationing
B
Production
C
Intervention
D
Allowance
Explanation: 

Detailed explanation-1: -Rationing involved setting limits on purchasing certain high-demand items. The government issued a number of “points” to each person, even babies, which had to be turned in along with money to purchase goods made with restricted items.

Detailed explanation-2: -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-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.

Detailed explanation-4: -In 1918, new laws set by the government introduced rationing, a way of sharing food fairly. Sugar, meat, flour, butter, margarine and milk were all rationed so that everyone got what they needed. Each person had special ration cards, even King George and Queen Mary. The cards could only be used at certain shops.

Detailed explanation-5: -Not all foods were rationed. Fruit and vegetables were never rationed but were often in short supply, especially tomatoes, onions and fruit shipped from overseas. The government encouraged people to grow vegetables in their own gardens and allotments. Many public parks were also used for this purpose.

There is 1 question to complete.