The individuals and society both face an economic problem.This problem arises from the fact that:
A)wants are limited but the resources are not.
B)resources are scarce relative to individual's wants.
C)individuals and institutions behave only in their self-interest.
D)both wants and resources are unlimited.

Question

Quizplus · Accepted Answer

The economic problem arises due to scarcity, which means that there are limited resources but unlimited wants. This forces individuals and society to make choices about how to allocate resources efficiently in order to satisfy the most pressing needs and wants. Therefore, B is the correct answer. A is incorrect because wants are unlimited, but resources are scarce, not unlimited. C is incorrect because while self-interest plays a role in decision-making, it is not the primary cause of the economic problem. D is incorrect because resources are scarce, not unlimited.

The Individuals and Society Both Face an Economic Problem