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Question : The basic economic problem confronting all societies is how to allocate scarce resources between

Option 1: Alternative uses

Option 2: Rich and poor

Option 3: Agricultural sector and industrial sector

Option 4: None of the above


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Alternative uses


Solution : The correct answer is (a) Alternative uses.
The fundamental economic problem arises due to the scarcity of resources relative to unlimited wants and needs. As a result, societies must make choices about how to allocate these limited resources among various alternative uses. This involves deciding what goods and services to produce, how to produce them, and for whom to produce them.

While the distribution of resources between rich and poor or between the agricultural and industrial sectors can be significant issues within an economy, they are not the central economic problem that all societies face. The central economic problem revolves around the allocation of scarce resources among alternative uses, considering factors such as efficiency, opportunity costs, and societal priorities.

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