The Figure Given Below Represents the PPC in Two Nations

question 55

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Which of the following statements is not true about a market system?

• A)The market system provides an incentive to consumers to acquire purchasing ability.
• B)The market system magnifies the problem of scarcity of goods and services.
• C)The market system provides an incentive for allocating resources.
• D)The market system provides an incentive to improve the quality of goods produced.
• E)The market system provides everything everyone wants to consume.

---

Definitions:

Physiological Need

Physiological Need refers to basic physical requirements essential for human survival, such as food, water, and shelter, as defined in theories of motivation like Maslow's hierarchy of needs.

A Drive

A drive is a psychological state that motivates an organism to satisfy a need, often critical for survival, like hunger or thirst.

Sleepiness

A state of strong desire for sleep, or sleeping for unusually long periods (compare with fatigue).

A Need

An essential requirement or necessity for survival, well-being, or the accomplishment of a task.