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Which of the following is not an economic problem ?
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- Deciding between paid work and leisure
- Deciding between expenditure on one good and the other
- Deciding between alternative methods of personal savings
- Deciding between different ways of spending leisure time
- Deciding between paid work and leisure
Correct Option: D
The Theory of Economic Problem states that scarcity exists in the sense that only finite and insufficient resources are available to satisfy the needs and desires of all human beings. The fundamental economic problem is how to allocate scarce resources to the provision of various goods and services within the economy. The question then becomes how to determine what is to be produced, and how the factors of production (such as capital and labor) are to be allocated.
