In a scenario where a company has to choose between investing in marketing or pr
Practice Questions
Q1
In a scenario where a company has to choose between investing in marketing or product development, which principle of resource allocation is being applied? (2023)
Scarcity.
Efficiency.
Equity.
Sustainability.
Questions & Step-by-Step Solutions
In a scenario where a company has to choose between investing in marketing or product development, which principle of resource allocation is being applied? (2023)
Step 1: Understand that a company has limited resources, like money and time.
Step 2: Recognize that the company has two options: investing in marketing or product development.
Step 3: Realize that because the company can't afford to do both, it must make a choice.
Step 4: Identify that this situation is an example of scarcity, where resources are not enough to satisfy all wants.
Step 5: Conclude that the principle of scarcity is being applied when deciding between the two investments.
