Multiple choice

The basic economic problems will not be solved by

  1. market forces

  2. government intervention

  3. a mixture of government intervention and the free market

  4. the creation of unlimited resources

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To create the unlimited resources is not possible by any economy in the world,because there are only finite resources. There are only a finite (or limited) number of workers, machines, acres of land and reserves of oil and other natural resources on the earth. Because most of our resources are finite, we cannot produce an unlimited number of different goods and services and by producing more for an ever-increasing population we are in real danger of destroying the natural resources of the planet. This has important consequences for the long-term sustainability of economies throughout the world and potentially huge implications for our living standards and the quality of life.