Q357
Which of the following is a cause of an economic problem?
A.
Scarcity of resources
B.
Alternative uses
C.
Unlimited wants
D.
All of the above
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Scarcity of resources, Alternative uses and Unlimited wants are the cause of an economic problem. Factors like production costs and labor affect the cost of scarce items. If the unlimited wants and needs of a particular good can be met by resources, then it is not considered scarce. This would require the resources to be unlimited as well for it to meet unlimited demand.