Why Do Societies Need Rationing Devices

question 76

Multiple Choice

Why do societies need rationing devices?

• A) Because people have too many needs and not enough wants.
• B) Because price exists.
• C) Because scarcity exists.
• D) Because people have opportunity costs.

---

Definitions:

Education and Knowledge

Education and knowledge pertain to the process of acquiring information, skills, values, and understanding through experiences, schooling, and study, which collectively empower individuals and societies.

Factor Distribution

Refers to the way in which income is distributed among the factors of production, typically labor, capital, and land.

Human Capital

The combined abilities, expertise, or other non-physical assets belonging to people that can be leveraged to generate economic worth.

Proprietor's Income

The income earned by the owner of a sole proprietorship, which consists of the profits generated by the business.