The fundamental problem of economics is
A) that resources are too scarce to satisfy all wants simultaneously
B) how to balance the federal budget
C) deciding how large government should be
D) how to keep the unemployment rate below 4%
E) that firms have no way to know what consumers want to buy

Question

Quizplus · Accepted Answer

The concept of scarcity is the foundation of economics. It means that resources are limited, but wants and needs are infinite. Therefore, society must make choices about how to allocate resources to maximize their satisfaction. This leads to the central economic problem of how to efficiently allocate scarce resources to meet unlimited wants and needs.

The Fundamental Problem of Economics Is