Question : The central economic problem of every society is
Option 1: To maintain peace in the world.
Option 2: To prevent famine in rural areas
Option 3: The scarcity of economic resources
Option 4: Decentralization of power
Correct Answer: The scarcity of economic resources
Solution : The correct answer is (c) The scarcity of economic resources
The other options are not central economic problems. Peace in the world and preventing famine in rural areas are important goals, but they are not economic problems. Decentralization of power is a political issue, not an economic one. The scarcity of economic resources is the fundamental economic problem because it forces societies to make choices about how to allocate their resources. There are always more wants than there are resources to satisfy them, so societies must decide what goods and services to produce, how to produce them, and for whom to produce them.
