Question

What determines the balance of production and consumption ?

Answer 1

The correct answer is Scarcity

Consumption and production are based on the scarcity of the resource. For example, if there is a scarcity of wheat, the country might introduce measures to reduce the amount of available bread that each person is allowed to procure in a store. This is done for example in periods during depressions so as to make sure that everyone gets food.

Answer 2

Answer:

Scarcity

Explanation:

Scarcity is a relative concept, in the sense that there is a desire to acquire more goods and services than is available. Many goods are not scarce in an absolute sense, but their continued exploitation encounters difficulties of various kinds that must be overcome through the provision of human and material resources.