Economic problem means scarcity of resources.Question 5AnswerTrueFalse

Which situation creates scarcity in an economy?A.Human and physical capital are used as factors of production when making goods.B.Citizens have more wants than they can fulfill with their available resources.C.Businesses disregard public needs and only supply goods that are cheap to make.D.Governments decide to distribute goods to make sure all citizens are equal.

Scarcity is correctly described by which of the following statements?Scarcity exists if there are more uses for resources than can be satisfied at one time.Scarcity exists if decisions must be made about alternative uses for resources.Scarcity would not exist in a society in which people wanted to help others instead of themselves. aI only bII only cIII only dI and II only eI, II, and III

The economic problem occurs when we have:

1) Which combination of terms gives the general definition of the economic problem?A bigger families, less food, starvationB falling supply, rising demand, shortageC higher population, fewer jobs, unemploymentD limited resources, unlimited wants, scarcity

In a capitalist economy, allocation of resources is done by