If a Society's Scarce Resources Are Allocated by the Government,which

question 66

Multiple Choice

If a society's scarce resources are allocated by the government,which of the following is most likely to result?

• A)Only those who circumvent the government's rules will prosper.
• B)Under a government allocation,no one will have to do without.
• C)It provides an incentive to be a member of government and thus help determine the allocation rules.
• D)Under a government allocation,some will have to do without,but the government guarantees that resource allocations are fair.
• E)Government allocation provides incentives to increase production and efficiency and to create value.

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Definitions:

Capitalism

Capitalism is an economic system characterized by private ownership of the means of production, profit-driven enterprise, and the market mechanism of supply and demand determining production and investment.

Economic Relations

Refers to the interactions and transactions among individuals, businesses, and governments concerning the production, distribution, and consumption of goods and services.

Capitalist System

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.

Social Relations

The interactions and connections among individuals within a society, shaping each other's behaviors, attitudes, and social structures.