Question

In the following Question, read the following statements and choose the correct alternative:

Statement 1: Scarcity is universal as every individual, organisation and economy faces scarcity of resources. 

Statement 2: There would have been no economic problem, if resources were not scarce.

Options

• Both the Statements are true.

• Both the Statements are false.

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true and Statement 1 is false.

Answer 1

Both the Statements are true.

Explanation:

Scarcity is universal, affecting individuals, organisations and economies. Since scarcity is the basic reason for economic problems, there would be no economic problem if resources were not scarce.