📚 Learning Guide
Resource Shifts in History
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A country is facing a severe economic crisis due to a natural disaster that has destroyed significant agricultural land. The government decides to reallocate resources from non-essential industries to food production. Which of the following best describes the economic principle at play in this situation?

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Choose the Best Answer

A

The country is implementing resource shifts to prioritize essential needs during a crisis.

B

The shift indicates a failure of the previous economic policies that overvalued non-essential industries.

C

This situation reflects the concept of opportunity cost, as resources are not being used in their most efficient capacity.

D

The decision demonstrates a lack of planning, as resources should always be allocated to their highest value regardless of context.

Understanding the Answer

Let's break down why this is correct

Answer

The situation describes the economic principle of resource allocation, which is how a country decides to use its available resources for different purposes. When the natural disaster destroyed agricultural land, the government recognized that food production became a priority to ensure people have enough to eat. By shifting resources from non-essential industries, like entertainment or luxury goods, to food production, the government is focusing on meeting the most urgent needs of its citizens. For example, if factories that usually make toys are repurposed to produce food packaging, this helps ensure that food can be distributed efficiently. This principle shows how economies can adapt to immediate challenges by reallocating resources where they are needed most.

Detailed Explanation

The country is focusing on what people need most during a crisis. Other options are incorrect because This answer suggests that the previous choices were bad; Opportunity cost means choosing one thing over another.

Key Concepts

Resource shifts
Economic efficiency
Opportunity cost
Topic

Resource Shifts in History

Difficulty

medium level question

Cognitive Level

understand

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