A basic underlying point in economics is that
A)governments should never interfere in the workings of a market economy.
B)people have unlimited wants in the face of limited resources.
C)people have limited wants in the face of limited resources.
D)governments should satisfy the needs of the people.
E)there are unlimited resources.

Question

Quizplus · Accepted Answer

Economics is the study of how society manages its scarce resources. Scarce resources means limited resources. People have unlimited wants, meaning they always want more goods and services than their resources can afford. This creates scarcity, which leads to the need to make choices on how to allocate resources.

A Basic Underlying Point in Economics Is That