Question

Part 1:   Which One Doesn’t Belong? (6 pts)

Directions:   First, review the definitions of each of the words in the question.   Highlight ONE of the four words that does not fit with the others. Then, explain why it doesn’t fit and why the other three words go together. Remember, your explanation is your most important part.  

1) Capital                             Natural                                 Human                                 Allocation

à Explanation:

2) Command                      Supply and Demand                        Mixed                                   Free-Market

à Explanation:

3) Producer                        Goods                                   Services                               Scarcity

à Explanation:

Answer 1

(Q-1)

So if we will look carefully capital, human resources and allocation has to be utilized very carefully to obtain the maximum efficiency in the economy as these have to be managed by the economic agent for their maximum output to obtain higher efficiency, however in case of Natural resources in the economy they always act on their own they have their own presence in the economy their function and location cannot be altered for anyone, for any purpose thus all three are different from natural

Answer - Natural

(Q-2)

Here all the three command, mix and free-market talk about the different types of markets based on the intervention of the government whereas if we will look on demand and supply it mainly describe the market clearing condition so thus they all three are different then demand and supply

Answer - Demand and Supply

(Q-3)

except first all the three goods, services and scarcity describe the availability and characteristic of goods and services in the market whereas in the case of producer it is all about the presence of economic agent who supplies goods and services in the economy

Answer - Producer