Question:
What is meant by the statement that every economic system faces the problem of scarcity?
(1) The quantities available of some resources in the society exceed the demand for them.
(2) Mineral deposits are available only in finite amounts in a country.
(3) Countries have failed to achieve full employment due to scarcity of resources.
(4) The productive resources are not sufficient to satisfy all wants of the society.
(5) Economic systems have cyclically recurring expansionary phases during which scarcity of resources occurs.
Correct Answer:
(4)
Answer Explanation:
The fundamental problem of scarcity is a universal reality across all economic systems. It occurs because human wants are virtually unlimited, while the productive resources available to satisfy those desires are strictly limited.
Topic: Introduction Year: 2020
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