The economic problem stems from the fact that:
A)the production possibilities curve bows out to the right
B)resources are scarce relative to people's demand for goods and services
C)people act to maximize their own welfare
D)historically the production possibilities curve has been shifting down toward the origin
E)the production possibilities curve bows in to the left

Question

Quizplus · Accepted Answer

The economic problem arises because resources are scarce in relation to people's demand for goods and services. This scarcity creates the need for individuals, businesses, and governments to make choices about how to allocate resources efficiently to fulfill their needs and wants.

The Economic Problem Stems from the Fact That