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Chapter 1 Unit II questions

For Chapter 1 Unit II questions Click Nature & Scope of Business Economics
QUESTION
Q6) In every economic system, scarcity imposes limitations on

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Solution:
Households, business firms, governments, and the nation as a whole. This is because all countries face the problem of scarcity. Their resources (natural productive resources, man-made capital goods, consumer goods, money and time etc.) are limited and these resources have alternative uses. Every economic system has to deal with this central problem of scarcity of resources relative to the wants for them. This is generally called ‘the central economic problem’.
Correct option is (a)