Q.

Economic problem arises mainly due to

A. overpopulation
B. unemployment
C. scarcity of resources
D. lack of industries
Answer» C. scarcity of resources
Explanation: The theory of Economic problem states that there is scarcity, or that the finiteresources 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.
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