Question 1
Basic ConceptsWhich of the following situations can give rise to economic problems?
- A.Unlimited human wants
- B.Wants of varying importance
- C.Limited means available for satisfying wants
- D.Means used in different ways
Show the answer and explanation
Answer: C (Limited means available for satisfying wants)
Explanation
The economic problem arises because the resources for satisfying wants are limited (scarce) while wants are many.