CA Foundation Exam > CA Foundation Questions > The central problem in economics is that ofa)...
Start Learning for Free
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?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
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.
Free Test
FREE
| Start Free Test |
Community Answer
The central problem in economics is that ofa)comparing the success of ...
Economics is the study of allocation of scarce resources
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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?
Question Description
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?.
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?.
Solutions 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? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of
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?, a detailed solution 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? has been provided alongside types of 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? theory, EduRev gives you an
ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup