Consider the following statements Statement 1 Resources or factors of production can be natural...........

Introductory Microeconomics Introduction

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Consider the following statements:

Statement 1: Resources or factors of production can be natural, human, capital, and entrepreneurial.

Statement 2: An economy must make a choice of the wants which are important for the economy.

Both Statements are true

Both Statements are false

Statement (1) is only true

Statement (2) is only true

Explanation:

Option (1) is correct.
Explanation: Resources are scarce and can be of four types; natural (land), human (labour), capital (machines), and entrepreneurship. For answering the question how to produce?", an economy must make a choice of the wants which are important for the economy. Even though the two statements are not linked together, both are true individually.

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