Question

Choose the incorrect statements:

(i) Resources are limited in relation to their demand.
(ii) All wants of humans have equal intensity.
(iii) All human wants can not be satisfied.
(iv) Economics is the study of satisfying limited wants.

Alternatives:

Options

• (i) and (ii)

• (ii) and (iv)

• (i), (ii) and (iii)

• (i), (iii) and (iv)

Answer 1

(ii) and (iv)

Explanation:

Human wants differ in priority and intensity, so they are not all equally important. Economics studies the allocation of scarce resources to satisfy unlimited wants, not limited wants.