GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Scarcity of recourses
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Unlimited wants
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Alternative use
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All of the above
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Detailed explanation-1: -Scarcity of resources, Alternative uses and Unlimited wants are the cause of an economic problem .
Detailed explanation-2: -A society faces scarcity of resources during the time of fulfillment of these activities. Such scarcity is evident due to the availability of only limited resources and increasing human needs. Therefore, this variation between the supply and demand leads to the formation of central problems of an economy.
Detailed explanation-3: -The three Central Problems of an Economy are? What to Produce and in What Quantity? How to Produce? For Whom to Produce?
Detailed explanation-4: -The central problem in economics is that what, how and for whom to produce and it is allocating scarce resources in such a manner that society’s unlimited needs or wants are satisfied as well as possible.
Detailed explanation-5: -Scarcity of resources like labour, land, and capital are insufficient when compared to the demand. Human beings’ demands and wants are unlimited and keep multiplying. Therefore, they cannot be satisfied because of limited resources.