Which of the following statement/statements is/are true?
Statement 1: Abundance is the mother of all economic problems.
Statement 2: Keynes was an American economist.
Answer & explanation
Correct answer: option 2
The answer is Option 2: Both the statements are false.
- Statement 1: Abundance is the mother of all economic problems. - This is false. The core challenge in economics is dealing with scarcity - limited resources but unlimited wants and needs. Abundance would actually eliminate many economic problems.
- Statement 2: Keynes was an American economist. - This is also false. John Maynard Keynes was a famous British economist.
Therefore, both statements are incorrect.