Question

To which factor, is economic problem basically related to?

• A. Choice
• B. Consumer's selection
• C. Firm selection
• D. None of these

Hint:

The core of economics can be summed up as: Unlimited Wants + Limited Resources = Scarcity, which necessitates Choice.

Answer 1

The Correct Option is A

The fundamental economic problem arises from the fact that human wants are unlimited, but the resources available to satisfy them are scarce. This scarcity forces individuals, firms, and governments to make decisions about how to allocate their limited resources. Therefore, the economic problem is fundamentally a problem of choice.