The study of Economics becomes necessary because of the______________

  • A Large population size of the world
  • B Scarcity of resources
  • C Opportunity cost of goods and services
  • D Need to satisfy every desire of man

The correct answer is B. Scarcity of resources

We study economics for different reasons such as allocation of natural resources, rational decision making, and solution to economic problems all of which point that desires are numerous while resources are scarce.

Economics seeks to study the relationship between ends and means. Ends are unlimited while the means are limited. Economics therefore seek is concerned with allocating limited resources among the competing and unlimited wants

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