The fundamental problem of economics is:
A)to establish a democratic political framework for the provision of social goods and services.
B)the establishment of prices which accurately reflect the relative scarcities of products and resources.
C)the scarcity of productive resources relative to material wants.
D)to achieve a more equitable distribution of money income in order to mitigate poverty.

Question

Quizplus · Accepted Answer

The fundamental problem of economics is the scarcity of productive resources relative to material wants. This means that there are limited resources to meet unlimited wants and needs, which requires individuals and societies to make choices about how to allocate those resources in the most efficient way possible. Choice A is more about political philosophy than economic theory, choice B is a part of the problem but not the main focus, and choice D is a social goal but not the primary problem of economics.

The Fundamental Problem of Economics Is