Which best explains why resources need to be allocated in the game of economics?

Question

Responses

There are not enough resources to produce all of the goods and services that everyone wants.

There are not enough resources to produce all of the goods and services that everyone wants.

If sufficient resources are not set aside for future production, scarcity cannot be eliminated.

If sufficient resources are not set aside for future production, scarcity cannot be eliminated.

There are always different production methods for the same goods and services.

There are always different production methods for the same goods and services.

Natural resources are often found in places far from where they are used for production.

Answer 1

The best explanation for why resources need to be allocated in the game of economics is:

There are not enough resources to produce all of the goods and services that everyone wants.

This statement addresses the fundamental economic problem of scarcity, which necessitates the allocation of limited resources to meet the competing wants and needs of individuals and society.