Question

Suppose that the hypothetical country of Kernaland suffers from chronic scarcity of its staple grain, corn. a. True or b. False: Kernaland is restrained by the resources it has to satisfy the various wants of its residents.

Answer 1

A. TRUE

Explanation: Generally, the amount of resources the hypothetical country of Kernaland has will be the determinant of how much grain it is going to buy or purchase in order to meet with the wants of its residents.

Kernaland will be faced with a major economic problem which is to effectively allocate the limited available resource to satisfy the unlimited wants of its residents. The staple grain corn is one of the 3 basic needs of man which is FOOD, so it is very necessary Kernaland tries to satisfy the various wants of its residents.