GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How to keep consumers out of debt?
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How to fulfill our unlimited wants and needs with limited resources?
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How to figure out the way to make the most money?
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How do we ensure all people get a college education?
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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: -people use their scarce resources to satisfy their unlimited wants. businesses supply unlimited goods & services with limited resources.
Detailed explanation-3: -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.