ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Governments must be relied upon to supply essential goods and services.
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Inflation and unemployment are unavoidable.
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Growing populations will deplete natural resources.
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Individuals and communities must make choices among competing alternatives.
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Detailed explanation-1: -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-2: -What is the fundamental problem of economics? This famous problem boils down to unlimited wants and limited resources. It is defined as the challenge of satisfying unlimited wants with limited resources. The major implications of scarcity in economics mainly relate to the allocation of resources.
Detailed explanation-3: -Individuals and societies are forced to make choices because most resources are scarce. Economics is the study of how individuals and societies choose to allocate scarce resources, why they choose to allocate them that way, and the consequences of those decisions.
Detailed explanation-4: -Scarcity is one of the key concepts of economics. It means that the demand for a good or service is greater than the availability of the good or service. Therefore, scarcity can limit the choices available to the consumers who ultimately make up the economy.