Question

Scarcity is the root of the problem of choice which every economic system has to face."" Discuss the basic problem of an economic system illustrating your answer with the use of production possibility curve.

Answer 1

Explanation:

The Problem of Choice: ... Therefore, scarcity of resources gives rise to the fundamental economic problem of choice. As a society cannot produce enough goods and services to satisfy all the wants of its people, it has to make choices. A decisio.n to produce one good requires a decision to produce less of some other good.

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