📚 Learning Guide
Scarcity in Economics
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If a society faces scarcity, what must it prioritize when allocating its limited resources?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Meeting all wants without trade-offs

B

Choosing alternatives that maximize benefits

C

Focusing solely on production without consideration of wants

D

Disregarding the opportunity cost of decisions

Understanding the Answer

Let's break down why this is correct

Answer

When a society faces scarcity, it must prioritize how to use its limited resources to meet the most important needs of its people. This often means focusing on basic necessities like food, water, and shelter first, as these are essential for survival. For example, if a community has a shortage of water, it should allocate its resources to ensure everyone has access to clean drinking water before spending on luxury items. Additionally, the society may need to consider which groups, like children or the elderly, require more support. By carefully deciding how to use its resources, the society can help ensure that the most critical needs are met, promoting overall well-being.

Detailed Explanation

When resources are limited, a society must choose the best options. Other options are incorrect because Some might think it's possible to meet all wants without any trade-offs; Focusing only on production ignores what people actually want.

Key Concepts

Scarcity
Opportunity Cost
Resource Allocation
Topic

Scarcity in Economics

Difficulty

medium level question

Cognitive Level

understand

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