Wants are unlimited
Resources are scarce
Scare resources have alternative uses
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is D. All of the above.
Economic problems arise because wants are unlimited, resources are scarce, and scarce resources have alternative uses.
- Wants are unlimited because people always want more and better goods and services.
- Resources are scarce because there is not enough of everything to satisfy all of our wants.
- Scarce resources have alternative uses, which means that they can be used to produce different goods and services.
Because of these three facts, we have to make choices about how to use our scarce resources. We have to decide what goods and services to produce, how to produce them, and who will get them. These are the basic economic problems that all societies face.
Here is a more detailed explanation of each option:
- Wants are unlimited. People always want more and better goods and services. They want to have a nice house, a nice car, and nice clothes. They want to eat good food and travel to nice places. They want to have the latest gadgets and technology. The list of wants is endless.
- Resources are scarce. There is not enough of everything to satisfy all of our wants. There is only so much land, so much water, so much oil, and so much other natural resources. There is only so much time, so much labor, and so much capital. Scarcity means that we have to make choices about how to use our resources.
- Scarce resources have alternative uses. Resources can be used to produce different goods and services. For example, land can be used to grow crops, raise livestock, or build houses. Labor can be used to make cars, computers, or clothes. Capital can be used to build factories, machines, or roads. The fact that resources have alternative uses means that we have to make choices about how to use them.
Because of these three facts, we have to make choices about how to use our scarce resources. We have to decide what goods and services to produce, how to produce them, and who will get them. These are the basic economic problems that all societies face.