ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the choice between the goods to be produce
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The choice between the technique to be used in production
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The choice to distribute the national income among individuals
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All the above
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Detailed explanation-1: -Since resources are scarce in every economy, no society can satisfy all the wants of its people. Thus, a problem of choice arises. It means, this problem is concerned with distribution of income among the factors of production (land, labour, capital and enterprise), who contribute in the production process.
Detailed explanation-2: -To be very simple, the problem of distribution is to determine the share of National Dividend that is to be given to land, labour, capital and organisation for their services in the process of production of National Dividend. Theories of distribution attempts to solve this problem.
Detailed explanation-3: -The central problem of “for whom to produce?” which is faced by the economy where the economy decides the consumer i.e rich people or poor people of the goods and services that are produced in an economy with the given resources and state of technology that prevails in the economy. Was this answer helpful?
Detailed explanation-4: -The central problem for whom to produce is the problem of allocation of resources. This relates to the distribution of national products among the various individuals. It is true that sharing of national product is directly influenced by the income of an individual.
Detailed explanation-5: -(i) Personal Distribution: It means how national income of an economy is distributed among different groups of people.