Arrange the following in the order in which they arise in a society:
(A) The goods and services produced are distributed among the individuals.
(B) The society decides how to allocate its resources to different goods and services.
(C) A particular combination of goods and services is produced.
(D) Scarce resources with competing uses give rise to the problem of choice.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (D), (B), (C), (A)
(D) Scarce resources with competing uses give rise to the problem of choice. — Scarcity comes first; it forces every society to choose.
(B) The society decides how to allocate its resources to different goods and services. — The choice is made by allocating resources.
(C) A particular combination of goods and services is produced. — Each allocation leads to one combination of output.
(A) The goods and services produced are distributed among the individuals. — Only goods already produced can be distributed.
NCERT (2026-27): “1.1 A Simple Economy … Any allocation of resources of the society would result in the production of a particular combination of different goods and services. The goods and services thus produced will have to be distributed among the individuals of the society. The allocation of the limited resources and the distribution of the final mix of goods and services are two of the basic economic problems faced by the society.” “1.2 Central Problems of an Economy Production, exchange and consumption of goods and services are among the basic economic activities of life. In the course of these basic economic activities, every society has to face scarcity of resources and it is the scarcity of resources that gives rise to the problem of choice. The scarce resources of an economy have competing usages. In other words, every society has to decide on how to use its scarce resources.” |