Give reasons for the following statements:
(i) Every economy has to make the decision relating to what to produce.
(ii) Problem of choice arises because available resources have alternative uses.

Explanation

(i) As, we know there is no economy in this world which possesses infinite resources to produce each and everything in infinite quantities.
Therefore, if an economy decides to produce a quantity of one commodity, then they have to sacrifice the production of another commodity.
(ii) Resources in every economy are always scarce. But the available resources can be put to alternative uses. Therefore, an economy will always prefer to make use of its resources in production of those goods and services that are most required and sacrifice the production of less-required goods and services.