Which of the following statements best describes the underlying feature in most economic problems?
A)People have unlimited wants in the face of limited resources.
B)There are unlimited resources.
C)Our country is rich; we just don't realize it.
D)People have limited wants in the face of limited resources.
E)Governments should never interfere in the workings of a market economy.

Question

Quizplus · Accepted Answer

The underlying feature in most economic problems is scarcity - the fact that people have unlimited wants but resources (both natural and human) are limited. This leads to the need for choices and trade-offs, which are at the heart of economic decision-making. Option B is incorrect as it contradicts the concept of scarcity. Option C is incorrect as it is a subjective claim that does not reflect the reality of resource constraints. Option D is partially correct, but it fails to acknowledge that people's wants are often more extensive than the resources available to satisfy them. Option E is also incorrect as governments often play a role in regulating and stabilizing market economies.

Which of the Following Statements Best Describes the Underlying Feature