Question 1 05 pts The overriding reason why households and s

Question 1 0.5 pts The overriding reason why households and societies face many decisions is that resources are scarce. goods and services are not scarce. incomes fluctuate with business cycles. people, by nature, tend to disagree. Question 2 0.5 pts In most societies, resources are allocated by a single central planner. a small number of central planners. those firms that use resources to provide goods and services. the combined actions of millions of households and firms

Solution

Question 1: The Overriding reason why households and societies face many decisions is that

Ans: Resources are scarce.

We have scarcity of resources, hence the management of the same is crucial. We (Society) has limited resources and which caccot produce all the goods and services. hence society and household have face many decisions like what and how to produce, what quantity should be produce, what resources should be used to produce that goods or services and at what price should that good sold for. These all deecisions are affected by scarcity of resources. Economics is all about the study of how society manages its scares resources.

Question 2. In most societies, resources are allocated by

Ans. the combined actions of millions of households and firms

In any society, resource allocation is done by collective afforts and not by only powerful dictators. Different firms and people interact with with each other and examine how large number of people , buyers and sellers of any good and determine the price at which good should be sold and what quantity to be produced and sold.