Question 1
Basic ConceptsChoice in economic life is necessitated by
- A.the need to construct scale of preference
- B.the opportunity cost of consumption
- C.unlimited wants
- D.scarcity of economic resources
Show the answer and explanation
Answer: D (scarcity of economic resources)
Explanation
We have to choose because resources are scarce compared with our wants. If resources were unlimited, no choice would be needed.