Government Role in Scarce Resource Management

Steps:

• Identify the US government's ownership and sale of helium stocks, indicating public sector involvement.
• Note helium's natural scarcity, taking thousands of years to form, classifying it as a factor of production (land/natural resources).
• Contrast essential medical uses with wasteful balloon applications to highlight resource allocation issues.
• Match these to concepts of public sector control and factors of production in economics.

Why D is correct:

• Public sector involves government ownership and management of resources, as seen in the US holding 30% of global helium; factors of production include natural resources like helium, per classical economic theory.

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 or formal government allocation mechanisms.
• C: Opportunity cost is vaguely present in wasteful uses, but no private monopoly exists—government controls the supply.

Final answer: D