Question

Due to scarcity of resources one must _______.

• A. take rational economic decisions
• B. trade off between different alternative use of resources
• C. use resources efficiently
• D. all of the above

Answer 1

The correct option is D all of the above

‘Scarce means’ is the fundamental problem of economics. It means that theresources in the world are limited whereas the wants of a man are unlimited and never-ending. Due to this, the resources are always insufficient to satisfy all human wants and needs. Apart from being scarce, the resources have alternative uses as well. Thus, it becomes extremely important to use the resources in the most effective and efficient manner.