Which of the following sets of terms describes the problem of scarcity in economics?
A) Goods, land, and needs
B) Labor, needs, and opportunity costs
C) Choices, opportunity costs, and trade-offs
D) Production, consumption, and wants

Question

Quizplus · Accepted Answer

Scarcity is the central issue of economics, and it is primarily concerned with the problem of choices, opportunity costs, and trade-offs. The choices that individuals, firms, and governments make often have opportunity costs, which are the forgone alternatives that are sacrificed in order to pursue a particular course of action. Trade-offs are also inherent in the decision-making process, as individuals and societies must allocate their limited resources among competing wants and needs. Therefore, choice (C) is the best set of terms that describes the problem of scarcity in economics.

Which of the Following Sets of Terms Describes the Problem