Q6) “If Americans today, for example were to content to live at the level of the Indian middle class people, all their wants would be fully satisfied with their available resources and capacity to produce.” On the basis of the above statement, which of the following conclusion can be made?

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Correct

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Solution:
The correct answer is (b) The affluent and developed countries of USA and Western Europe face the problem of scarcity even today as their present wants remain ahead of their increased resources and capacity to produce.

The statement implies that if Americans were content to live at the level of the Indian middle class, their wants would be fully satisfied with their available resources and capacity to produce. This suggests that Americans currently have wants and desires that go beyond what their resources and capacity to produce can satisfy.

Option (a) is incorrect because the statement does not suggest that the possession of goods and services by the USA has enormously increased to exceed their wants. It simply suggests that their wants and desires are currently greater than their available resources and capacity to produce.

Option (c) is also incorrect because the statement does not imply that affluent and developed countries are not facing the problem of scarcity. It only implies that their wants and desires are currently greater than their available resources and capacity to produce.

Option (d) is incorrect because option (b) is a valid conclusion that can be made based on the statement.
Correct option is (b)

C A foundation Economics Paper4 Part I Questions for practice