Question

Suhana wants to buy chocolates worth ₹30, stationary worth ₹50, and save ₹30 in her bank account. So, her total expenses amount to ₹110. But she has only ₹100 as pocket money.

Suggest Suhana on how she should manage her pocket money and expenses with respect to economics.

• A. Suhana can ask for an extra ₹10 from her parents.
• B. Suhana should postpone all her expenses.
• C. Suhana should not spend her pocket money at all.
• D. Suhana should try to prioritise her expenses.

Answer 1

The correct option is D Suhana should try to prioritise her expenses.

Economics is the study of how unlimited needs are met by the effective use of limited resources like time, money, labour, and land. All expenses are unlimited needs and pocket money is a limited resource. Because the resource is limited, needs are to be prioritised. Therefore, Suhana should prioritise her expenses such that it is less or equal to her pocket money.