Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To maximize profits for businesses
B
To ensure the fair distribution of resources
C
To achieve the most efficient use of limited resources
D
To minimize government intervention
Understanding the Answer
Let's break down why this is correct
Answer
The primary goal of resource allocation in an economy is to use limited resources in the best way possible to meet people's needs and wants. Since resources like land, labor, and capital are scarce, we must decide how to distribute them effectively. This means figuring out what goods and services are most important and making sure they are produced and available for everyone. For example, if a country has a limited amount of water, it must decide whether to use it for farming, drinking, or industry. By carefully allocating resources, an economy can help ensure that everyone has access to what they need to live well.
Detailed Explanation
The main goal is to use limited resources in the best way. Other options are incorrect because Some might think the goal is to help businesses make money; People may believe that fair sharing is the main goal.
Key Concepts
resource allocation
Topic
Resource Allocation and Scarcity
Difficulty
easy level question
Cognitive Level
understand
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