The <em>concept of scarcity</em> states that there will be a deficit regarding the supply of a certain good in comparison the demand for it. Therefore, a state budget must revise its current state knowing that there will always be some players who will lose benefits in the attempt of shifting the assignment of resources.
The <em>marginal analysis</em> is an examination of the additional benefits a certain activity gets compared to a number of additional resources assigned to it. It helps the state government have a better view of where to allocate resources. As there are sectors that will probably gain more benefits than others with the same assigning of resources. The key to this analysis is to now the best amount to allocate to each sector in order to get the maximum efficiency of the budget.
<h2>Option C It will have negative consequences.</h2>
The three questions of economics;
- What to Produce? A real command economy is about the production that is defined by a primary economic authorization. The true free market production is planned by unique preferences. Nevertheless, most states befall around within an actual command economy and a truly free market and production is concluded by a blend of fundamental preparation and personal preferences.
- How to Produce? There are several methods to design a product or service of the similar essence. As a businessperson, it is necessary to possess a distinct perception of total dilemmas.
- For Whom to Produce? All goods and services are invented for notable to consume. A free market, who understands the defined by capability to produce at a rate decided by supply and demand.
Is the practical implementation of a State, other than its military units, that enforces law and order.