ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -The mismatch of unlimited wants and needs and limited economic resources is called the basic economic problem.
Detailed explanation-2: -The three basic problem of economics are: What to produce. How to produce. For whom to produce.
Detailed explanation-3: -The fundamental problem in economics is the issue with the scarcity of resources but unlimited wants. Economics has also pointed out that a man’s needs cannot be fulfilled. The more our needs are fulfilled, the more wants we develop with time. By definition, scarcity implies a limited quantity of resources.
Detailed explanation-4: -The fundamental economic problem results from the mismatch between limited resources and unlimited wants. It is referred to as ‘scarcity’ by economists. Scarcity occurs when society cannot fulfill all its wants because resources are limited.