Question

In Economics, this is used to test a theory.

Select one:

a. Model

b. Theory

c. Price

d. Market

Which of the below resources is considered the most scarce?

Select one:

a. Land

b. Money

c. Time

d. Space

Answer 1

1. Option A.

In economics, a model is usually used to test a theory.

Economists usually use such models in order to support their theories that they have proposed.

This is because, these models provide strong proofs to their theories.

2. Option A.

Land is considered as the most scarce resource.

Land, labour and machineries are the three main resources used by the firms in the production process.

But due to the expansion of markets, land has become a very scarce resource.