Question

Multiple choice question:

Principal characteristic of resources are:

• A. they are scarce in relation to our needs
• B. they have alternative uses
• C. both (a) and (b)
• D. none of these

Answer 1

The correct option is C both (a) and (b)

Resources refers to the resources which are limited in quantity and have alternative uses in production of various commodities. So the problem of these scarce resources is reflected in the aggregate supply of the economy which is also limited owing to limited source of inputs.