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What is the significance of 'resource allocation' in microeconomics?

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Question

What is the significance of 'resource allocation' in microeconomics?

Options

  • Measuring GDP

  • Promoting optimal use of scarce resources

  • Determining tax collection

  • Calculating national debt

MCQ
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Solution

Promoting optimal use of scarce resources

Explanation:

Resource allocation ensures resources are used where they are most valued.

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