Question

What is 'Allocation of limited resources'?

• A. Central problem of a company
• B. Central problem of a person
• C. Central problem of economy
• D. All of these

Hint:

Resource allocation is fundamental to economics, as it deals with how to distribute scarce resources efficiently.

Answer 1

The Correct Option is C

Step 1: Understanding resource allocation.
The allocation of limited resources refers to how scarce resources (like land, labor, and capital) are distributed in an economy to meet the needs and wants of individuals, businesses, and society. This is a central issue in economics because resources are finite, but human wants are infinite.

Step 2: Analyzing the options.
(A) Central problem of a company: This is incorrect. A company faces problems related to production, costs, and profit, but not the allocation of resources on a larger scale.
(B) Central problem of a person: This is not correct. While individuals face choices regarding their own resources, the allocation of limited resources is a broader issue in economics.
(C) Central problem of economy: Correct. The allocation of limited resources is a central issue in economics because it involves distributing scarce resources across competing uses.
(D) All of these: This is incorrect, as only (C) is the correct answer.

Step 3: Conclusion.
The allocation of limited resources is a central problem of the economy. Hence, the correct answer is (C) Central problem of economy.