Resources Have Alternative Uses

Resources having alternative uses gives rise to the problem of:

Correct Answer Explanation

Alternative uses of resources give rise to the problem of choice between different commodities that can be produced by those resources.

Key Points:

• Resources are limited and have alternative uses.
• Example: agricultural resources (land, labour, water, fertiliser) can produce food crops or non-food crops (rubber, cotton, jute).
• This creates the fundamental economic problem of choice.

Why Other Options Are Wrong

• A, B, D: Alternative uses specifically create the problem of choice in production.