Question 2
Basic ConceptsMost of the problems of economies arise as a result of
- A.competing demands for scarce resources
- B.increase in the demand for more goods and services
- C.the desire of producers to supply more goods and services
- D.the need to reduce the level of poverty
Show the answer and explanation
Answer: A (competing demands for scarce resources)
Explanation
Resources are limited while wants compete for them; this scarcity is the root of all economic problems.