Resources are limited, while human wants are unlimited.

Resources are abundant, but human wants are scarce.

Resources are equally distributed, but human wants are not.

Human wants are limited, but resources are abundant.

Limited availability of resources

Unlimited human wants

Inefficient allocation of resources

Opportunity cost

The value of the next best alternative that is foregone when making a choice.

The total cost of producing a good or service.

The difference between the price of a good and its marginal cost.

The cost of the resources used in producing a good or service.

It forces individuals and societies to make choices and prioritize their wants.

It eliminates the need for economic decision-making.

It ensures that all human wants can be satisfied.

It makes economic decision-making irrelevant.

Prices signal the relative scarcity of resources and guide decision-making.

Prices are irrelevant in resource allocation.

Prices are determined by government policies and do not reflect scarcity.

Prices are set by producers and do not influence resource allocation.

Capitalism

Socialism

Mixed economy

Traditional economy

It allows for efficient allocation of resources based on supply and demand.

It ensures equal distribution of resources among all individuals.

It eliminates the need for government intervention in resource allocation.

It guarantees that all human wants will be satisfied.

Achieving the highest level of output with the given resources.

Distributing resources equally among all individuals.

Minimizing the cost of producing goods and services.

Maximizing the profits of producers.

Productive resources are used to produce goods and services, while unproductive resources are not.

Productive resources are owned by the government, while unproductive resources are privately owned.

Productive resources are renewable, while unproductive resources are non-renewable.

Productive resources are scarce, while unproductive resources are abundant.

It allows for more efficient use of resources and discovery of new resources.

It eliminates the need for resource allocation.

It makes resource scarcity irrelevant.

It leads to overconsumption and depletion of resources.

Sustainable development aims to meet current needs without compromising the ability of future generations to meet their own needs.

Sustainable development is irrelevant to resource scarcity.

Sustainable development encourages overconsumption of resources.

Sustainable development ignores the concept of opportunity cost.

Education and awareness can help individuals and societies make informed choices and reduce resource waste.

Education and awareness have no impact on resource scarcity.

Education and awareness promote overconsumption and resource depletion.

Education and awareness are irrelevant to resource allocation.

Economic growth

Environmental degradation

Technological innovation

Poverty

Costs or benefits that arise from an economic activity and are not reflected in the market price.

Costs or benefits that are directly paid for by the producer or consumer.

Costs or benefits that are imposed on society as a whole.

Costs or benefits that are internal to the firm or individual.

Government policies can affect resource allocation through taxes, subsidies, regulations, and public investment.

Government policies have no impact on resource allocation.

Government policies are irrelevant to resource scarcity.

Government policies only affect the allocation of financial resources.