GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An economic problem faced by all is:
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Unlimited needs and wants and limited resources to satisfy those needs and wants.
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Excess resources which can bring about wastage
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Scarce resources which can be used in many different ways so it is essential that the nation maximises opportunity cost
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Limited needs and wants and unlimited resources to satisfy those needs and wants
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Explanation:
Detailed explanation-1: -’Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources. The basic concern of an economy is to allocate the scarce resources to the best possible use in the face of unlimited wants. Thus, the problem of scarcity forces an economy to make a choice among various alternatives.
Detailed explanation-2: -Human wants are unlimited. we may satisfy some of our wants but soon new wants arise. It is impossible to produce goods and services so as to satisfy all wants of people. Thus scarcity explains the relationship between limited resources and unlimited wants and the problem there in.
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