Question

If there were no choices in resource allocation, microeconomics would not have existed.

• A. True
• B. False

Answer 1

The correct option is A True

Micro economics deals with solving the central problem of the economy which deals with resource allocation. It is the study of how resources are allocated in the production of various goods and services in the economy for the satisfaction of human wants. This is because these resources are scarce and have alternative uses whereas human wants are unlimited.