Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Allocating resources to healthcare can lead to reduced funding for education.
B
Scarcity means that resources are always completely unavailable.
C
Making choices about resource allocation often involves trade-offs.
D
Every choice made regarding resource use has an opportunity cost.
E
Resources can be freely allocated without any consequences.
Understanding the Answer
Let's break down why this is correct
Answer
Fundamental economic choices refer to the decisions individuals and societies must make about how to use limited resources to meet their needs and wants. Since resources like time, money, and materials are scarce, we cannot have everything we want, so we must choose what is most important. For example, if a family has a limited budget, they might have to decide between buying groceries or saving for a vacation. This choice reflects their priorities and helps them allocate their resources effectively. Ultimately, understanding these choices helps us see the trade-offs involved in every decision we make regarding spending and resource use.
Detailed Explanation
When we decide how to use our resources, we often have to give up one thing to get another. Other options are incorrect because This statement suggests a specific example of trade-offs but does not explain the general idea; Scarcity means there are not enough resources to meet all our wants, but it doesn't mean they are gone.
Key Concepts
Fundamental Economic Choices
Resource Allocation
Opportunity Cost
Topic
Fundamental Economic Choices
Difficulty
easy level question
Cognitive Level
understand
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