Question on: JAMB Economics - 2018
The need to construct a scale of preference is necessitated by____________
A
scarcity and the need for choice
B
The needs to satisfy wants
C
Non - availability of factors of production
D
Scarcity of resources
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Correct Option: A
The scale of preference is constructed because of the fundamental economic problem of scarcity. Here's why:
- Scarcity: Resources are limited, while wants are unlimited. This means we can't have everything we desire.
- Need for Choice: Because of scarcity, we are forced to make choices about which wants to satisfy first. The scale of preference helps us prioritize our wants.
- Other options: While scarcity of resources (D) is related to the answer, it is not as complete as the need for choice. The need to satisfy wants (B) is a consequence of scarcity and is not what necessitates the scale. Non-availability of factors of production (C) is related to the supply side, but not the demand side where the scale of preference is most relevant.
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