Question

Economic choice and competitive behaviour are the result of ____________.

• A. basic human need
• B. poverty
• C. private ownership of resources
• D. scarcity

Answer 1

The correct option is A basic human need

The problem of scarcity, stems from the basic idea that human wants and needs are unlimited, however the earth only contains a finite amount of resources that can be used to produces goods and services that will fulfill the unlimited wants and needs.

Since resources are scarce, the people are forced to make choices about what to produce, how to produce and for whom to produce. Thus there are alternative uses for economic resources and this fuels competition.