GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The pre-independent Indian economy, where most people were farmers.
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A mythical economy where everybody is a billionaire.
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Any economy where income is distributed equally among its people.
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None of the above.
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Detailed explanation-1: -Answer. option D is correct answer because scarcity causes choice and choice implies the decision making relates to usage of limited or rare resources in an economy so if there is no scarcity means there is no choices and no economy.
Detailed explanation-2: -Scarcity, Choice, and Cost All choices mean that one alternative is selected over another. Selecting among alternatives involves three ideas central to economics: scarcity, choice, and opportunity cost.
Detailed explanation-3: -To Exemplify, a farmer has 10 acres of land he has a choice to either grow wheat or cotton on it. The limited land is a scarcity of the resource. The alternative crops wheat and cotton show how we have choices.
Detailed explanation-4: -Scarcity means individuals, businesses and governments have to deal with the problem of unlimited wants, but limited resources. Every economic system, from capitalism to socialism, has to deal with the problem of scarcity whereby the demand is greater than the supply.
Detailed explanation-5: -Answer and Explanation: The correct answer is b. Resources are scarce when compared to the demand for them. Scarcity is an economic problem, and it is defined as the gap between the unlimited wants of individuals and limited resources in the economy.