Economic problem occurs when

A.

There is scarcity relative to demand

B.

All raw materials are imported

C.

Many people are out of work

D.

There are no buyers for our goods

Correct answer is A

Scarcity explains the basic economic problem that the world has limited or scarce resoures to meet seemingly unlimited wants, and this reality forces people to make decisions about how to allocate resources in the most efficient way.