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Question
Macroeconomics
Posted 8 months ago
Which of the following best captures the idea of the fundamental economic problem?
Choose 1 answer:
(A) Limited resources and unlimited wants
(B) Infinite resources and limited wants
(c) Limited wants and limited resources
(D) Unlimited resources and unlimited wants
(E) Lack of demand for limited resources
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Answer from Sia
Verified answerPosted 8 months ago
Solution
a
Definition of Fundamental Economic Problem: The fundamental economic problem is the issue of scarcity, which arises because resources are limited while human wants are unlimited
b
Limited Resources and Unlimited Wants: This concept captures the essence of the fundamental economic problem, as it highlights the tension between finite resources and infinite desires
Answer
(A) Limited resources and unlimited wants
Key Concept
Scarcity
Explanation
The fundamental economic problem is rooted in scarcity, which occurs because resources are limited and cannot satisfy all human wants. This necessitates making choices about how to allocate resources efficiently
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