Scarcity Drives the Core Economic Problem

Steps:

• Identify the fundamental issue in economics: all societies face choices due to resource constraints.
• Recall the definition of the economic problem: it arises from conflicting human desires and available means.
• Evaluate choices against this: the root cause must apply universally to all economies.
• Select the option that matches the classic explanation of scarcity.

Why D is correct:

• Economics defines the central problem as scarcity—unlimited human wants exceed finite resources, forcing allocation decisions (per Lionel Robbins' definition).

Why the others are wrong:

• A: Climate change is an environmental issue, not the universal economic cause.
• B: Unemployment is a symptom of poor resource use, not the origin of the problem.
• C: Income inequality affects distribution but stems from scarcity, not causing it.

Final answer: D