CA Foundation P4 · Chapter 1 · Question 6 of 15
The basic economic problem of scarcity arises because:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Human wants are unlimited while resources are limited and have alternative uses
Explanation
Scarcity means resources are limited relative to wants, and those resources can be put to alternative uses, so choices must be made. A shortage of money or government restrictions are not the root cause; and the Malthusian population claim is not a universal fact.
More Nature and Scope of Business Economics MCQs
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- Q9Which of the following is commonly cited as a major demerit of a capitalist economy?
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- Q12Which of the following falls within the macroeconomic (external) scope of Business Economics?