Which of the following is the main factor responsible to create economic problems in society ?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Unlimited wants and scarce resources
People want many goods and services, and their wants keep growing. The resources to produce them, such as land, labour and machines, are limited. So no society can meet every want, and it has to choose which wants to meet and how. It is this scarcity of resources that gives rise to the problem of choice, that is, to economic problems.
If resources were in surplus, every want could be met and there would be nothing to choose. Costly resources or a large population can make the problem harder, but scarcity is what causes it in every society.
NCERT (2026-27): “1.1 A Simple Economy Think of any society. People in the society need many goods and services1 in their everyday life including food, clothing, shelter, transport facilities like roads and railways, postal services and various other services like that of teachers and doctors. In fact, the list of goods and services that any individual2 needs is so large that no individual in society, to begin with, has all the things she needs.… …It goes without saying that no individual has unlimited resources compared to her needs.… …The same is the case with all other individuals in society. Everyone faces scarcity of resources, and therefore, has to use the limited resources in the best possible way to fulfill her needs.… 1.2 Central Problems of an Economy Production, exchange and consumption of goods and services are among the basic economic activities of life. In the course of these basic economic activities, every society has to face scarcity of resources and it is the scarcity of resources that gives rise to the problem of choice. The scarce resources of an economy have competing usages. In other words, every society has to decide on how to use its scarce resources.…” |