Government Role in Managing Scarce Resources

Steps:

• Examine the statement: US government holds and sells 30% of helium, a limited natural resource.
• Identify public sector involvement: Government controls supply, indicating state ownership and distribution.
• Analyze helium's uses: Essential for medical scanners (productive input) versus wasteful balloons.
• Link to concepts: Public sector manages the resource; helium qualifies as a factor of production (natural resources).

Why D is correct:

• Public sector involves government ownership and management of resources like helium reserves; factors of production include natural resources essential for goods production, per economic definitions.

Why the others are wrong:

• A: Demand and supply are implied but not central; no evidence of government subsidies.
• B: No indication of excess supply; allocation is partial but not the focus.
• C: Opportunity cost hinted in wasteful use, but supply is public, not private monopoly.

Final answer: D