Question 27
HardOriginal questionA country shifts land from growing food grains to growing flowers for export. Which central problem is it answering?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
The land is being moved from one product to another, changing the mix of goods.
Changing the mix of goods answers what to produce.
Worth noting
Exporting does not make it 'for whom': the decision is still about which good the land produces.
- Concept
- Reallocating resources
- Typical timeTypical
- 100 s
- Your timeYours
- —
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