Unit 2 Allocation of Resources Economics

Front

Aarush is planning a community event but has a limited budget. He wants to provide various activities and food options for everyone, but he realizes that he cannot satisfy all the desires of the community due to his financial constraints. What is the key economic problem he faces?

Back

Scarcity

Front

Who is the father of Economics? He wrote the book 'Wealth of Nations'?

Back

Adam Smith

Front

In a bustling city, Aanya runs a small bakery that she owns and operates. She decides what to bake, sets her own prices, and keeps the profits. What is a feature of capitalism?

Back

Private property

Front

What does the price mechanism do?

Back

Determines prices by market forces

Front

What is the profit motive?

Back

Maximization of profit

Front

What is a demerit of capitalism in the context of a growing tech startup noticing a widening gap between the wealthy and the less fortunate?

Back

Inequalities of wealth

Front

Merit of socialism the town council hopes to achieve in implementing a new economic system.

Back

Economic planning

Front

What is a characteristic of a mixed economy in the town of Greenfield, where businesses are owned by both the government and private individuals?

Back

Coexistence of public and private sectors

Front

What does effective demand refer to in the context of Avani buying a new smartphone?

Back

Willingness and ability to buy goods

Front

What happens to demand when the price increases?

Back

Demand decreases