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The source of all economic problems arises from

...

The source of all economic problems arises from

A.

Wants

B.

Scarcity

C.

Opportunity cost

D.

Scale of preference

Correct answer is B

Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible.