Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Scarcity means that all resources are completely depleted at some point.
B
Resource allocation involves making choices about how to distribute limited resources to meet various needs.
C
The concept of scarcity applies only to physical goods and not to services.
D
Efficient resource allocation can lead to improved overall well-being in society.
E
Individuals and societies must prioritize their wants and needs due to the scarcity of resources.
Understanding the Answer
Let's break down why this is correct
Answer
In economics, resource allocation refers to how resources like money, time, and materials are distributed to meet needs and wants. Scarcity means that resources are limited, so we cannot have everything we want, leading to the need for choices. For example, if a school has a fixed budget, it must decide whether to spend money on new computers or sports equipment; choosing one means sacrificing the other. This situation highlights the idea that every choice has an opportunity cost, which is what we give up when we make a decision. Therefore, understanding resource allocation and scarcity helps us make informed decisions about how to use our limited resources effectively.
Detailed Explanation
All the statements misunderstand key ideas about scarcity and resource allocation. Other options are incorrect because Scarcity does not mean resources run out completely; Resource allocation is about choosing how to use limited resources, but the statement is too vague.
Key Concepts
Resource Allocation
Scarcity
Economic Efficiency
Topic
Resource Allocation and Scarcity
Difficulty
medium level question
Cognitive Level
understand
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