The study of economics arises because of the necessity of choice, and the necessity of choice arises because of the fundamental problem of scarcity of resources. False True

Question

Social Studies

Reagan Cowan

31 May, 07:10

The study of economics arises because of the necessity of choice, and the necessity of choice arises because of the fundamental problem of scarcity of resources. False True

+2

Answers (1)

Know the Answer?

Gael Gallagher · Answer 1

True

Explanation:

The study of economics arises because human wants are numerous, and the resources that are available to satisfy these wants are scares or limited.

According to Lord Lionel Robbins, he defined Economics as "a social science that studies human behaviour as a relationship between ends and scares means which have alternative uses"

The concept of ends refers to human wants, desires or needs which are numerous relative to the resources used in satisfying them. The scares means in his definition means that the limited resources available can be used to satisfy different needs hence prompting human to make choice on the best use of the resources available to them.

Therefore the statement "The study of economics arises because of the necessity of choice, and the necessity of choice arises because of the fundamental problem of scarcity of resources." is True because choice arises as a result of scarcity prompting individual to make rational decisions.