GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Higher the income, higher will be the buying capacity and higher will be his demand for goods in general.
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Higher the income, lower will be the buying capacity and higher will be his demand for goods in general
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Goods will be produced for those who do not have buying capacity
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income one will be able to make depends only on the amount of work he does
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Detailed explanation-1: -The correct answer is d. The problem will exist as long as resources are available in limited amounts.
Detailed explanation-2: -This problems deals with the issue of deciding the category of people who will consume the goods. That is to produce goods for the poor or for the rich. Since the resources are scarce, the economy has to decide for whom it will produce goods.
Detailed explanation-3: -The fundamental economic problem is the issue of scarcity but unlimited wants. Scarcity implies there is only a limited quantity of resources, e.g. finite fossil fuels. Because of scarcity, there is a constant opportunity cost – if you use resources to consume one good, you cannot consume another.
Detailed explanation-4: -One of the major causes of economic problems is unlimited human wants. One of the major causes of economic problems is the alternative usage of resources. One of the major causes of economic problems is the scarcity of economic resources. More items