The study of economics arises because of the necessity of choice, and the necessity of choice arises because of the fundamental problem of:
A)inefficiency.
B)equilibrium.
C)inequity.
D)scarcity.

Question

Quizplus · Accepted Answer

The study of economics arises due to the fundamental problem of scarcity, which is the condition that arises because society has limited resources and unlimited wants and needs. Therefore, individuals and society as a whole must make choices about how to allocate scarce resources to satisfy their wants and needs. This necessity of choice is what gives rise to economic thinking and the study of economics.

The Study of Economics Arises Because of the Necessity of Choice