Question

intro to economics test scarcity and choice are economic problems faced by every society because —
o wants are unlimited but resources are scarce.
o shortages occur due to extreme weather conditions.
o resources should be equally distributed amongst all members of society
o individuals do not know how to rationally spend money

Explanation:

The core economic problem of scarcity and choice arises because human wants are unlimited (people always have more desires) while resources (like land, labor, capital) are scarce (limited in supply). The first option explains this concept. The second option is about shortages from weather (not the core economic scarcity), the third is about resource distribution (a result of scarcity - based choices, not the cause of the economic problem), and the fourth is about rational spending (not related to the cause of scarcity - driven economic problems).

Answer:

A. wants are unlimited but resources are scarce.