The fact that our wants are unlimited but our resources are limited implies that
A) we should limit our wants.
B) entrepreneurship has failed as an economic system.
C) we have to make choices.
D) the only way to make someone better off is to make someone else worse off.

Question

Quizplus · Accepted Answer

Since we cannot have everything we want due to limited resources, we have to make choices about what we prioritize and allocate resources towards. This is the foundation of economic decision-making and is known as opportunity cost. Entrepreneuship as an economic system may not necessarily have failed, but it is important to recognize the limitations and trade-offs inherent in any economic system. Option A is not necessarily the best choice, as limiting wants can stifle innovation and economic growth. Option D is incorrect, as it is possible to increase overall societal welfare without making someone worse off, through mutually beneficial transactions and cooperation.

The Fact That Our Wants Are Unlimited but Our Resources