10 Questions
What is the main challenge faced by every country?
Limited resources and multiple potential uses
Why does the economic problem arise?
Human wants are unlimited and resources are scarce
What would happen if resources were unlimited?
There would be no economic problem
What role does coal play in illustrating the problem of scarcity?
It can serve multiple purposes despite being limited in quantity
Why is there a need to make the best possible use of resources?
To get maximum satisfaction as human wants are unlimited
What is the central economic problem that every economic system has to deal with?
Scarcity of resources
Which of the following is not one of the four basic economic problems derived from the central economic problem?
Where to produce
In the context of the central economic problem, what does 'how to produce' refer to?
Deciding on the techniques of producing a commodity
What is the main consideration in deciding 'what to produce' in the context of the central economic problem?
Availability and quantity of resources
Why does a society need to decide 'for whom to produce' in the context of the central economic problem?
To distribute goods and services among its members
Learn about the basic problems faced by an economy and how different economies solve them. Understand the role of the price mechanism in solving the fundamental economic problems.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
