📚 Learning Guide
Resource Allocation and Scarcity
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A city is facing a severe shortage of water due to an ongoing drought. The local government must decide how to allocate the limited water supply among various sectors: agriculture, residential use, and industrial production. Which of the following principles of resource allocation best describes the government's approach to prioritizing these needs?

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Choose the Best Answer

A

The government should allocate water equally among all sectors to ensure fairness.

B

The government should prioritize water allocation based on which sector contributes most to the city's economic productivity.

C

The government should focus on minimizing costs and reducing water supply for sectors that can survive with less, regardless of their economic impact.

D

The government should allocate water based solely on historical use patterns, maintaining the status quo.

Understanding the Answer

Let's break down why this is correct

Answer

In a situation where a city is facing a severe water shortage, the government must carefully decide how to distribute the limited water supply among agriculture, residential use, and industrial production. The principle of resource allocation that best describes this approach is prioritization based on necessity and impact. For example, residential use might be prioritized to ensure that families have enough water for drinking and basic hygiene, as this is essential for health and survival. Agriculture might follow, as it is important for food production, but it may be limited to ensure that enough water is available for households. Industrial production might receive the least amount of water, as it can often adjust its processes or reduce output to cope with the shortage, thus allowing the essential needs of people and food production to be met first.

Detailed Explanation

The government should focus on which sector helps the city the most economically. Other options are incorrect because Some might think fairness means giving everyone the same amount; This idea suggests cutting water to sectors that can manage with less.

Key Concepts

Resource Allocation
Scarcity
Economic Efficiency
Topic

Resource Allocation and Scarcity

Difficulty

medium level question

Cognitive Level

understand

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