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The central problem in economics is that of
- a)comparing the success of command versus market economies.
- b)guaranteering that production occurs in the most efficient manner.
- c)guaranteering a minimum level of income for every citizen.
- d)allocating scarce resources in such a manner that society’s unlimited needs or wants are satisfied as well as possible.
Correct answer is option 'D'. Can you explain this answer?
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The central problem in economics is that ofa)comparing the success of ...
The central problem in economics is the allocation of scarce resources in such a manner that society's unlimited needs or wants are satisfied as well as possible. In other words, how do we distribute limited resources in a way that maximizes their utility and satisfies the needs and wants of society?
To understand this problem, we need to first define the key terms:
- Scarce resources: Resources that are limited in supply relative to the demand for them.
- Needs: Basic requirements for human survival, such as food, water, and shelter.
- Wants: Desires beyond what is necessary for human survival, such as luxury goods and services.
With these definitions in mind, we can see that the central problem in economics arises because there are limited resources to satisfy unlimited needs and wants. This creates a situation where choices have to be made about how to allocate resources.
There are several factors that influence how resources are allocated, including:
- Market forces: The prices and demand for goods and services in the marketplace.
- Government policies: Regulations and laws that govern the distribution of resources.
- Social norms: Shared beliefs and values about what is important and deserving.
Ultimately, the goal of economic systems is to create a balance between the allocation of resources and the satisfaction of needs and wants. This requires a careful consideration of trade-offs and a willingness to make difficult choices about how resources are allocated.
In summary, the central problem in economics is how to allocate scarce resources in a way that maximizes their utility and satisfies the needs and wants of society. This requires a careful consideration of market forces, government policies, and social norms, as well as a willingness to make difficult choices about resource allocation.
To understand this problem, we need to first define the key terms:
- Scarce resources: Resources that are limited in supply relative to the demand for them.
- Needs: Basic requirements for human survival, such as food, water, and shelter.
- Wants: Desires beyond what is necessary for human survival, such as luxury goods and services.
With these definitions in mind, we can see that the central problem in economics arises because there are limited resources to satisfy unlimited needs and wants. This creates a situation where choices have to be made about how to allocate resources.
There are several factors that influence how resources are allocated, including:
- Market forces: The prices and demand for goods and services in the marketplace.
- Government policies: Regulations and laws that govern the distribution of resources.
- Social norms: Shared beliefs and values about what is important and deserving.
Ultimately, the goal of economic systems is to create a balance between the allocation of resources and the satisfaction of needs and wants. This requires a careful consideration of trade-offs and a willingness to make difficult choices about how resources are allocated.
In summary, the central problem in economics is how to allocate scarce resources in a way that maximizes their utility and satisfies the needs and wants of society. This requires a careful consideration of market forces, government policies, and social norms, as well as a willingness to make difficult choices about resource allocation.
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The central problem in economics is that ofa)comparing the success of ...
Economics is the study of allocation of scarce resources
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The central problem in economics is that ofa)comparing the success of command versus market economies.b)guaranteering that production occurs in the most efficient manner.c)guaranteering a minimum level of income for every citizen.d)allocating scarce resources in such a manner that societys unlimited needs or wants are satisfied as well as possible.Correct answer is option 'D'. Can you explain this answer?
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The central problem in economics is that ofa)comparing the success of command versus market economies.b)guaranteering that production occurs in the most efficient manner.c)guaranteering a minimum level of income for every citizen.d)allocating scarce resources in such a manner that societys unlimited needs or wants are satisfied as well as possible.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The central problem in economics is that ofa)comparing the success of command versus market economies.b)guaranteering that production occurs in the most efficient manner.c)guaranteering a minimum level of income for every citizen.d)allocating scarce resources in such a manner that societys unlimited needs or wants are satisfied as well as possible.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The central problem in economics is that ofa)comparing the success of command versus market economies.b)guaranteering that production occurs in the most efficient manner.c)guaranteering a minimum level of income for every citizen.d)allocating scarce resources in such a manner that societys unlimited needs or wants are satisfied as well as possible.Correct answer is option 'D'. Can you explain this answer?.
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