Question
Explain how scarcity and choice go together.
✓
Answer
Scarcity refers to the basic economic problem, the gap between limited – that is, scarce resources and theoretically limitless wants. Resources are not only scarce but also have alternative uses i.e., land can be used for producing wheat or for constructing warehouses or factories. Hence, it leads to a problem of choice. However, if resources were not scarce one could have anything, anytime and then there would have been no problem of choice.
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