Question 1 - MCQ Questions (1 Mark) - Chapter 1 Class 6 Economics - Introduction to Economics - Economics

What is the main problem that economics tries to solve?

A. How to create unlimited resources

B. How to satisfy unlimited wants and needs with limited resources

C. How to distribute goods and services equally among everyone

D. How to eliminate scarcity and poverty

Answer:

Answer by Student

The correct answer is (B) How to satisfy unlimited wants and needs with limited resources

Detailed Explanation by Teachoo

Economics is the social science that studies how people make choices to satisfy their unlimited wants and needs with limited resources. This is the main problem that economics tries to solve.

Let’s check all the options:

• Option (A) How to create unlimited resources - Resources are the inputs or factors of production that are used to produce goods and services. Resources are scarce, meaning they are not available in unlimited quantities. Creating unlimited resources is not possible, nor is it the main problem of economics. So, this is incorrect .
  
  
• Option (B) How to satisfy unlimited wants and needs with limited resources - Wants and needs are the desires or preferences of people for goods and services that can satisfy them. Wants and needs are unlimited, meaning they are always more than what can be satisfied with the available resources. Satisfying unlimited wants and needs with limited resources is the main problem of economics. So, this is correct .
  
  
• Option (C) How to distribute goods and services equally among everyone - Distribution is the process of allocating or sharing goods and services among different people or groups. Distribution can be equal or unequal, depending on various factors such as income, wealth, power, etc. Distributing goods and services equally among everyone is not the main problem of economics, but rather a normative or ethical issue. So, this is incorrect .
  
  
• Option (D) How to eliminate scarcity and poverty - Scarcity is the situation where the available resources are not enough to satisfy all the wants and needs of people. Poverty is the situation where people lack the minimum income or consumption level to meet their basic needs. Eliminating scarcity and poverty is not the main problem of economics, but rather a positive or empirical issue. So, this is incorrect .