Madhu has Rs 50,000 with her and she wants to buy an AC, fridge, bicycle etc. with it. As her wants are unlimited but resources to fulfill the wants are unlimited, according to you which economic problem is she facing right now?
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: Problem of choice
Explanation: Madhu is facing the problem of choice because she has limited resources (Rs 50,000) but unlimited wants (AC, fridge, bicycle, etc.). This is a fundamental economic problem where individuals must choose how to allocate their limited resources to satisfy their most important needs and wants.