Which of the following statements best describes the underlying feature in most economic problems?
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)There are unlimited resources.
E)Our country is rich; we just don't realize it.

Question

Quizplus · Accepted Answer

The concept of scarcity, which refers to the existence of limited resources and unlimited wants and needs, is a fundamental feature in most economic problems. It is the reason why economic agents (individuals, firms, governments) must make choices and tradeoffs, as they cannot have everything they want due to resource constraints. None of the other answer choices correctly describe this underlying feature.

Which of the Following Statements Best Describes the Underlying Feature