📚 Learning Guide
Trade-offs in Economics
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If a government decides to allocate more resources to healthcare, which of the following is the most likely underlying cause for this trade-off?

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Choose the Best Answer

A

The need for improved public health outcomes

B

An abundance of resources available for all sectors

C

A decrease in population requiring fewer services

D

The belief that healthcare is the only priority for citizens

Understanding the Answer

Let's break down why this is correct

Answer

When a government chooses to put more money and resources into healthcare, it often means they have to take those resources away from something else, like education or infrastructure. This decision shows the concept of trade-offs in economics, where you have limited resources and must decide how to use them. For example, if a country decides to build more hospitals, it might have to reduce funding for public schools, meaning fewer teachers or larger class sizes. The underlying cause of this trade-off is the need to prioritize certain needs over others, based on what the government believes is most important for the well-being of its citizens. Ultimately, the choice reflects the values and goals of the government and society as a whole.

Detailed Explanation

When a government puts more money into healthcare, it usually wants to make people's health better. Other options are incorrect because Some might think there are enough resources for everything; It's a common mistake to think that fewer people means less need for services.

Key Concepts

Trade-offs in Economics
Scarcity of resources
Public policy decisions
Topic

Trade-offs in Economics

Difficulty

medium level question

Cognitive Level

understand

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