The basic economic problem is a situation of
A) limited resources and unlimited wants.
B) both limited resources and limited wants.
C) limited incomes and unlimited choices.
D) unlimited incomes and limited choices.

Question

Quizplus · Accepted Answer

The basic economic problem is the scarcity of resources in relation to unlimited human wants and needs. This means that there are limited resources to satisfy unlimited human wants and needs, leading to the need to make choices and allocate resources efficiently. Option B is incorrect because it suggests that there are limited wants, which is not true. Option C is incorrect because it focuses on incomes, which is not the main issue in the basic economic problem. Option D is incorrect because it suggests that people have unlimited choices, which is not true given the limited resources.

The Basic Economic Problem Is a Situation of