Correct Answer - D
D. Central problems of an economy arise due to the following reasons : (a) Limited or Scarce Resources: Resources are scarce in relation to our wants and economy cannot produce all what people want. It is the principal reason for existence of economic problems in all economies. (b) Alternative uses: Resources can be put to alternative uses. For example, land is used not only for the production of crops but also for construction buildings and factories. As a result, the economy has to make a choice between the alternative uses of the given resources. (c) Unlimited wants: Human wants are unlimited in number. They are never-ending and they can never be fully satisfied.
