Which of the following questions must be asked about the use of resources

in an economic system?

O

A. What is the fairest allocation?

O

B. What is the most effective allocation?

O

C. What allocation will provide the fastest growth?

O

D. What is the most secure allocation?

B. What is the most effective allocation?

Explanation:

Economics is the social study of how society allocates its limited resources to meet the unlimited need of its members. It involves the distribution of scarce resources to various sections of the community to meet different wants. Economist's primary concern is the efficient use of the available resources to achieve maximum benefits.

Economics will involve making decisions on the use of available resources. Economists will calculate the opportunity cost in every situation before making a decision. The purpose of finding the opportunity costs to determine the most effective ways of allocating resources.