Answer to Question #248914 in Microeconomics for Priya

Question

Assume that your are from any one of the following family how can you utilise the limited resources to fulfill your needs

Farmers

Petty shoper

Flowers vender

Answer 1

Coming from a farmers family, the available resources include farm produce, land and money from selling the produce. Money obtained from selling the produce will be used to fund my education so that I can get a well paying job. From the employment salary, I will save part of the money while I use some to meet my short-term needs. The savings will latter be invested after they have been accumulated to a significant amount. Part of the investment will include expanding the farming practice. The profits obtained from the investments will be used to meet my long-term needs.