An economic problem arises when________

  • A Sellers are few
  • B Scarcity and choices are involved
  • C Buyers are many
  • D Money is in short supply

The correct answer is B. Scarcity and choices are involved

Economic problems arise when resources are scarce but the wants and needs are unlimited.

This creates the need for individuals, businesses, and nations to make choices about how to allocate their resources most efficiently to satisfy those wants and needs.

This fundamental problem of economics necessitates trade-offs and leads to questions about what, how, and for whom to produce. 

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