Question

‘Scarcity is the root of all economic problems.’ Explain the statement.​

Answer 1

root cause for all economic problem

this is a correct answer ☝️☝️

Answer 2

We all have a lot of wants. Our wants are unlimited.But compared to wants, means and choices are limited. Thus we feel scarcity. This leads into the situation in which we have to approach our wants in a priority basis. This leads to the problem of choice .

In an economy, scarcity and choice leads ro three central problems which are allocation of resources, fuller utilisation of resources and growth of resources. Thus scarcity is the root cause of all economic problems.

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