The allocation of scarce resources and the distribution of the final goods and services are the ........... of any economy.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Central problems
Every economy faces the issue of scarcity of resources in relation to unlimited human wants. This gives rise to the central problems of an economy, which involve making choices about:
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What to produce (allocation of scarce resources),
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How to produce (choice of technique), and
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For whom to produce (distribution of final goods and services).