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

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.
 

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.

 

By: Parvesh Mehta