The fundamental economic problem is that productive resources are scarce in relation to the demand for them.

Question

Quizplus · Accepted Answer

This statement is true. All economies face the fundamental economic problem of scarcity, which means that we have infinite wants and needs, but limited resources available to fulfill them. This necessitates the need to make choices about how to allocate resources, which is the central focus of economics.

The Fundamental Economic Problem Is That Productive Resources Are Scarce