Microeconomics: Introduction · Class 11 · CBSE · Commerce Economics
A town has enough water for only some of the uses its residents desire. Which statement best explains the economic problem faced by the town?
Practice question from Microeconomics: Introduction (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-716231
A town has enough water for only some of the uses its residents desire. Which statement best explains the economic problem faced by the town?
- A.Water is scarce in relation to unlimited wants, so choices must be made.Correct answer
- B.Water has no economic value because it is essential for life.
- C.The problem exists only because water is not produced in factories.
- D.The problem can be eliminated completely by making all water free.
Solution
The basic economic problem arises because resources are scarce relative to unlimited wants. Therefore, the town must choose how to allocate its limited water among competing uses.
More from Microeconomics: Introduction
- Riya has three hours available. She can attend a study workshop, work at a job earning ₹600, or spend the time relaxing. She values the job…
- Which investigation is an example of microeconomic analysis?
- Distinguish between positive economics and normative economics, giving one example of each.
- An economy must decide whether scarce land should be used to build a hospital or a shopping complex. Which central problem of an economy do…
Practise more Economics
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed