Efficient Allocation of Scarce Resources

Steps:

• Identify the basic economic problem: scarcity of resources relative to unlimited human wants.
• Recognize that solving it requires deciding what, how, and for whom to produce.
• Evaluate choices for direct relevance to resource distribution.
• Select the option that optimizes limited resources to meet needs.

Why B is correct:

• The basic economic problem, per economic theory, is allocating scarce resources efficiently to maximize satisfaction of wants, as defined by scarcity principle.

Why the others are wrong:

• A: Market control influences allocation but does not inherently solve scarcity.
• C: Environmental preservation is a goal, not a direct solution to resource scarcity.
• D: Eliminating hunger addresses a symptom, not the core allocation issue.

Final answer: B