Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It leads to overproduction of public goods
B
It necessitates prioritization and efficiency in resource allocation
C
It has no impact on public goods
D
It increases the availability of private goods
Understanding the Answer
Let's break down why this is correct
Answer
Limited resources affect the allocation of public goods because there isn't enough money, materials, or labor to provide everything everyone wants. When resources are scarce, governments must make choices about which public goods to fund, like schools, parks, or roads. This means they have to prioritize some services over others, which can lead to some communities receiving less support. For example, if a city has a limited budget, it might decide to focus on improving public transportation instead of building a new playground. As a result, not everyone may get the same benefits from public goods, leading to inequalities in what people have access to.
Detailed Explanation
When resources are limited, we must choose carefully how to use them. Other options are incorrect because Some might think that having fewer resources means we make more public goods; It's a common belief that limited resources don't matter for public goods.
Key Concepts
resource allocation
public goods
Topic
Impact of Limited Resources
Difficulty
medium level question
Cognitive Level
understand
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