BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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resources are limited
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resources are unlimited
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human needs are unlimited
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funds are limited
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Detailed explanation-1: -If resources were unlimited and freely available, making choices would not be necessary. Every person could have as much as they wanted of any good or service. Economics, the science of choice, would be unnecessary.
Detailed explanation-2: -Resources are scarce because we live in a world in which humans’ wants are infinite but the land, labor, and capital required to satisfy those wants are limited. This conflict between society’s unlimited wants and our limited resources means choices must be made when deciding how to allocate scarce resources.
Detailed explanation-3: -Why is economic analysis important? Economic analysis helps charities and their funders compare the value of the impact created by a social intervention with the cost of creating it. These comparisons help decide how best to allocate resources.
Detailed explanation-4: -In most cases, there just isn’t enough money in the budget to do everything. Economics helps us understand the decisions that individuals, families, businesses, or societies make, given the fact that there are never enough resources to address all needs and desires.