Question:
The central problem of economics is
(1) establishing a fair tax system.
(2) ensuring a minimum income for each citizen.
(3) allocating scarce productive resources to satisfy wants.
(4) enacting a set of laws that prevent resources from overuse.
(5) producing goods and services without being wasting resources.
Correct Answer:
(3)
Answer Explanation:
The fundamental economic problem is scarcity, which arises because human wants are unlimited but the productive resources available to satisfy those wants are limited. Economics is the study of how to allocate these scarce resources efficiently.
Topic: Introduction Year: 2022
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