Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

Read the case study given below and answer the question :

In reality working of an economy is much more complex than a society. During the course of basic economic problems, every society has to face scarcity of resources. This scarcity gives rise to economic problems. Every society must decide on how much of each of the many possible goods and services, it will produce. Problems of technology to be adopted also arises in due course of time. Who gets how much of produced goods and how should this produce will be distributed among the individuals in the economy are problems, which are being faced by an economy.

Allocation of scarce resources and distribution of the final goods and services are the ________ of any economy.

Options:

Problems of choice

Central problems

Reasons for existence

Combination

Correct Answer:

Central problems

Explanation:

The correct answer is option (2) : Central problems

Allocation of scarce resource and distribution of the final goods and services are the central problems of any economy.