Introduction to Economics Essay Type Questions Question 1. Explain the relationship between scarcity and choice
in detail. Answer:
The element which gives rise to economic problem is that resources are scarce
in relation to wants. If the resources, like wants, were unlimited, no economic
problem would have arisen because in that case all wants would have been
satisfied and there would have been no problem of choosing between all wants
and allocating the scarce resources between them. Because the resources are scarce, all wants cannot be satisfied.
Therefore, human beings have to decide that for the satisfaction of which wants
the resources should be used and which wants should be left unfulfilled. It
should be noted that means or resources here refer to natural productive
resources, man-made capital goods, consumer goods, money and time available
with man, etc. If the means or resources were unlimited, then we would have
obtained goods in the desired quantities because in that state of affairs goods
would have be…
