Question

Society wants to use its scarce resources efficiently. To achieve this economic goal it must:

A. Increase government intervention
B. Embrace a command economy
C. Minimize government involvement
D. Promote income inequality

Answer 1

To achieve economic efficiency and use scarce resources effectively, society must minimize government involvement and rely on market forces and individual decision-making.

Step-by-step explanation:

Economic Efficiency and Government Involvement

In order to use its scarce resources efficiently, society must minimize government involvement. This means that society should rely on market forces and individual decision-making, rather than heavy government regulation and control.

By allowing the market economy to coordinate the production of goods and services based on consumer demand, resources can be allocated efficiently.

Government intervention, such as increased regulations and restrictions, can lead to inefficiencies and reduce economic output. Embracing a command economy, where the government controls the allocation of resources, can also lead to inefficiencies and reduce economic freedom.

Therefore, the correct answer is C. Minimize government involvement in order to achieve economic efficiency and use scarce resources effectively.