The fundamental problem that is studied in economics is that
A) consumers have limited wants in the face of unlimited resources.
B) markets should function without government interference.
C) Canada is too wealthy.
D) consumers have unlimited wants in the face of limited resources.
E) there are unlimited resources.

Question

Quizplus · Accepted Answer

The fundamental economic problem is that human wants and needs are unlimited, but resources are scarce or limited. This creates the problem of how to allocate limited resources to satisfy unlimited wants and needs. Choice A, E, and C are incorrect because they do not reflect the core economic problem. Choice B is a proposition concerning the role of government in the market, rather than an economic problem.

The Fundamental Problem That Is Studied in Economics Is That