Question

Which of the following statements is true?

• A. Human wants are infinite
• B. Resources are limited
• C. Scarcity problem gives birth to choice
• D. All of these

Hint:

The core of economics is: Unlimited Wants + Limited Resources = Scarcity, and Scarcity forces us to make Choices.

Answer 1

The Correct Option is D

These three statements together form the foundation of the fundamental economic problem, which is the central issue that economics seeks to address:

(A) Human wants are infinite: People's desires for goods, services, and leisure are endless and insatiable.
(B) Resources are limited: The means to satisfy these wants (land, labor, capital, time) are scarce or finite.
(C) Scarcity gives birth to choice: The conflict between unlimited wants and limited resources (scarcity) forces individuals, businesses, and societies to make choices about what to produce, how to produce it, and for whom to produce it.
All three statements are fundamental truths in economics.