Question

Alternative uses of resources gives rise to the _________ between different commodities that can be produced by those resources.

• A. problem of inequality
• B. problem of choice
• C. social problem
• D. none of the above

Answer 1

The correct option is B problem of choice

Resources in the economy are scarce and if these resources have alternative uses, and demand exists for all the commodities that will be produced. The producer will then face the problem of choice between the utilization of various resources for the production of the different commodities demanded in the market.