The primary goal of economic activities is to:
A) expand the production of goods and services.
B) equalize the distribution of consumer income and wealth.
C) make the most efficient use of scarce productive resources.
D) reallocate resources from consumption to production in the economy.

Question

Quizplus · Accepted Answer

The primary goal of economic activities is to make the most efficient use of scarce productive resources. This means that resources are allocated in such a way that maximum output is produced with minimum input. This goal is achieved through the use of market mechanisms such as price and supply/demand signals. The other options, expanding production, equalizing income and wealth, and reallocating resources from consumption to production, are all secondary goals that may arise as a result of achieving the primary goal of making efficient use of resources.

The Primary Goal of Economic Activities Is To