Question

The central problem in economics is that of:

• A. Comparing the success of command versus market economies.
• B. Guaranteeing that production occurs in the most efficient manner.
• C. Guaranteeing a minimum level of income for every citizen.
• D. Allocating scarce resources in such a manner that society's unlimited needs or wants are satisfied, so as to maximise utility.

Answer 1

The correct option is D Allocating scarce resources in such a manner that society's unlimited needs or wants are satisfied, so as to maximise utility.

Economics is the study that establishes an effective relationship between unlimited wants and the availability of scarce resources to overcome the economic problem of limited resources so that all the unlimited wants are satisfied, so as to achieve maximum utility by the use of scarce resources.