What is the basic economic problem facing all societies?
Select ONE answer:
- a divergence between social costs and private costs
- unequal distribution of income
- unemployment of resources
- unlimited wants and scarce resources
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Economics KS5 classes.
The answer is 4
- This is a problem in terms of allocation of resources but it is not the basic economic problem
- This may be a government priority but it is not the basic economic problem.
- This may be a policy issue for the government but it is not the basic economic problem.
- Correct: This explains why the basic economic problem of scarcity occurs.
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