Why Is It Necessary for All Economic Systems to Not

question 87

Multiple Choice

Why is it necessary for all economic systems to not only provide people with goods and services, but also restrict them from getting as much of these goods and services as they wish?

• A)Failure to do this could reduce the efficiency of the system by producing some goods and services that are not as highly valued as others.
• B)Failure to do this could lead to an inequitable allocation of goods and services produced.
• C)Failure to do this will lead to drastic shortages of all goods and services.
• D)Failure to do this could reduce efficiency and lead to an inequitable allocation of output.

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Definitions:

Tasks

Specific pieces of work to be done, often as part of a broader project or job.

Equilibrium

The point at which market demand and supply equalize, stabilizing price levels.

Equitable Distribution

The fair allocation of resources among all members of a community or society.

Incentive to Change

Factors or motives that encourage individuals or organizations to modify their behavior or decisions.