Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To maximize the efficiency of resource use
B
To ensure equal distribution of wealth
C
To increase the population growth rate
D
To minimize government intervention
Understanding the Answer
Let's break down why this is correct
Answer
The primary purpose of resource allocation in an economy is to ensure that limited resources are used in the most efficient way possible to meet the needs and wants of people. Resources like land, labor, and capital are scarce, so deciding how to distribute them helps maximize production and improve overall well-being. For example, if a country has a lot of fertile land, it might allocate that land to grow food, which can help feed its population. This process involves making choices about what to produce, how to produce it, and for whom it is produced. Efficient resource allocation can lead to economic growth, as it helps create more goods and services that people value.
Detailed Explanation
The main goal of resource allocation is to use resources in the best way. Other options are incorrect because Some might think the goal is to share wealth equally; It's a common mistake to think resource allocation is about increasing the number of people.
Key Concepts
Resource allocation
Topic
Economic Growth and Resource Allocation
Difficulty
easy level question
Cognitive Level
understand
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