Question

Scarcity of resources leads to _______.

• A. unsatisfactory human wants
• B. evaluation of alternative uses of scarce resources
• C. both A and b
• D. none of the above

Answer 1

The correct option is C both A and b

Scarcity of resources leads to both unsatisfactory wants and evaluation of alternative uses of these resources. The resources present in the economy are limited whereas the human wants are never ending and unlimited. Due to this all wants cannot be fulfilled. Hence, they remain unsatisfied. Not only this, the resources also have alternative uses. This means that they can be put to various uses. Thus it becomes important to put the resource in the best use so that they can be used efficiently.