Answer:
Economic problem basically means a problem of choice. It arises because human wants are unlimited and the resources to satisfy these wants are not only scarce but have alternative uses as well. Scarcity means excess of wants over the available resources and choice refers to selecting the best alternative. As we are aware of the fact that resources are scarce and wants are unlimited, therefore choice has to be exercised to ensure the optimum utilisation of such resources. Also, if there is no scarcity of resources, there would be no need to choose as human would have satisfied all his wants due to unlimited resources. So, the problem of choice arises because of scarcity of resources. Therefore, it can be said that scarcity and choice go together.
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