Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

____________ gives rise to the problem of choice.

Options:

Cost

Production

Endowment

Scarcity

Correct Answer:

Scarcity

Explanation:

The correct answer is option (4) : Scarcity

  • Scarcity refers to the limited availability of resources in relation to unlimited human wants.
  • Because resources such as land, labor, capital, and raw materials are finite, individuals and societies must make choices about how to allocate them efficiently.
  • This gives rise to the problem of choice, where decision-makers must prioritize certain goods and services over others.