"If Americans today, for example were to content to live at the level of the Indian middle class people, all their wants would be fully satisfied…

CA Foundation · Business Economics · MTP · September 2024
"If Americans today, for example were to content to live at the level of the Indian middle class people, all their wants would be fully satisfied with their available resources and capacity to produce.” On the basis of the above statement, which of the following conclusion can be made?
(A) A. The possession of goods and services by USA has enormously increased to exceed their wants.
(B) B. The affluent and developed countries of USA and Western Europe face the problem of scarcity even today as their present wants to remain a head of their increased resources and capacity to produce.
(C) C. The affluent and developed countries are not facing the problem of scarcity.
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. The affluent and developed countries of USA and Western Europe face the problem of scarcity even today as their present wants to remain a head of their increased resources and capacity to produce.

Topics: Nature & Scope of Business Economics

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