Natural Resource Allocation: What is the Most Correct Statement?
Which of the following statements about allocation of resources is the most correct?
a. Natural resources are allocated according to local availability.
b. Natural resources are allocated based on population size.
c. Natural resources are allocated according to demand and economic strength.
d. There is no observable pattern in resource allocation.
Please select the best answer from the choices provided
Answer:
Resources are allocated according to demand and economic strength in a market economy.
The most correct statement about the allocation of natural resources is that they are allocated according to demand and economic strength. In a market economy, resources are distributed based on the principle of supply and demand. When there is high demand for a particular resource and a strong economic incentive to extract or produce it, allocation decisions are made accordingly. This means that resources are not allocated solely based on local availability or population size, but rather on the forces of demand and economic strength.