McqMate
| Q. |
The problem of Economics arises from |
| A. | Plenty |
| B. | Scarcity of goods |
| C. | More wants and less goods |
| D. | All of the above |
| Answer» C. More wants and less goods | |
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Explanation: The theory of Economic problem states that there is scarcity, or that the finite resources available are insufficient to satisfy all human wants and needs. The problem then becomes how to determine what is to be produced and how the factors of production(such as capital and labor) are to be allocated. In short, the economic problem is the choice one must make, arising out of limited means and unlimited wants. |
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