The economic problem is essentially one of deciding how to make the best use of
A)limited resources to satisfy limited wants.
B)unlimited resources to satisfy limited wants.
C)limited resources to satisfy unlimited wants.
D)unlimited resources to satisfy unlimited wants.

Question

Quizplus · Accepted Answer

Resources such as land, labor, and capital are limited while human wants are unlimited. Therefore, people have to make decisions about how to allocate these limited resources in order to satisfy unlimited wants. This leads to the economic problem of scarcity, which requires making choices about what to produce, how to produce, and for whom to produce.

The Economic Problem Is Essentially One of Deciding How to Make