Question

Resources are:

Options

• Scarce

• Alternative uses

• Both scarce and alternative uses

• None of these

Answer 1

Both scarce and alternative uses

Explanation:

Resources are scarce, meaning their supply is limited compared to the unlimited human wants. Additionally, resources have alternative uses, so they can be used in different ways, creating the need for choice and allocation. The scarcity and alternative uses of resources together lead to the economic problem of making decisions on how best to use resources to satisfy wants as fully as possible.