Question

The central problems of an economy arises because of _________.

• A. unlimited wants
• B. scarce resources having alternative uses
• C. limited wants and unlimited resources
• D. both (a) and (b)

Answer 1

Answer: (D)

both (a) and (b)

The central problems like what to produce, how to produce etc. rises due to the relationship between wants and resources. As it is very well known that human wants are unlimited and if scarce resources have alternative uses, then many questions related to production can be put forward which will act as a problems in the economy.