Answer to Question #194849 in Economics for Nonhlanhla

Question

The following term refers to the basic economic problem.

a. Scarcity

b. Wealth

c. Income

d. Consumption

Answer 1

Scarcity refers to a basic economic problem—the gap between limited resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.

So, the correct answer is a.