Question

The three questions of economics are based on decisions made by economies.

What statement best describes why economies must make these decisions?

Economies must make these decisions because resources are unlimited, but production must be limited.
Economies must make these decisions because resources are limited.
Economies must make these decisions because consumers cannot make decisions on their own.
Economies must make these decisions to prevent producers from over-producing.

Answer 1

Economies must make these decisions because resources are limited.

Scarcity of resources forces societies to choose what to produce, how to produce it, and for whom to produce.