Answer to Question #256056 in Microeconomics for Lavanya P

Question

Assume that your from following family who can you utilize the limited resources to fullfill your needs family farn, petty shopper and flowers vendor

Answer 1

Petty shopper.

Petty shopping involves making a significant deal out of limited resources that exist. Petty shoppers can perform well in sparsely populated areas such as villages that are remotely located.

The size of the shop is small and it occupies a limited amount of space and therefore does not require wider ground for its structuring.

The amount of stock in the shop must not necessarily be large. More specifically, it is stocked with only basic goods and necessities that people use frequently.

The amount of capital required to start and run a petty shop is quite small and it can be afforded through borrowing from friends and relatives or by acquiring a small loan from a microfinance lending institution.

Management is easily carried out by a single individual as a sole proprietor. There is no cost of hiring employees to perform tasks as it would have been in a big business setup. Petty shopper can act as a source of continuous flow of income to the jobless individuals in the society.