Question

According to Lionel Robbins, why does the problem of choice arise in economics?

Options

• Because all resources are freely available

• Because wants are unlimited and resources are limited with alternative uses

• Because goods cannot be produced

• Because needs are easily satisfied

Answer 1

Because wants are unlimited and resources are limited with alternative uses

Explanation:

Robbins explained that the core problem in economics is making choices, as people have many wants but there are not enough resources to fulfill them all, and those resources can be used in different ways.