Question 4
Basic ConceptsAn economic problem exists whenever
- A.there is scarcity and choice
- B.there are no buyers for our goods
- C.there are too many sellers
- D.many people are out of work
- E.all raw materials are imported.
Show the answer and explanation
Answer: A (there is scarcity and choice)
Explanation
The basic economic problem arises because resources are scarce, so people must choose which wants to satisfy.