The study of economics is necessary mainly because of

1. Analyze the question The question asks for the main reason we need to study economics at all. Think of the central problem economics tries to solve.

2. Explain the concept Economics is the study of how individuals, firms and governments make choices when resources are limited. The basic economic problem is scarcity: human wants are unlimited, but the resources used to satisfy them (land, labour, capital, entrepreneurship) are limited. Scarcity forces us to:

• Choose what to produce,
• Rank our wants in order of preference (scale of preference),
• Accept an opportunity cost for each choice.

Without scarcity, there would be no need to choose, and so no need for economics.

3. Solution: check each option

• A. Unemployment: This is an economic problem, but it is a result of how resources are used, not the main reason economics exists.
• B. Unlimited resources: This is the opposite of reality. If resources were unlimited, there would be no choices to make.
• C. Scarcity of resources: This is correct. Scarcity is the root of all economic problems and the reason for the subject.
• D. Overpopulation: This can worsen scarcity in some places, but it is not the main reason for studying economics.

4. Answer The correct option is C. Scarcity of resources.

5. Exam tip Remember the chain: Unlimited wants + Limited resources → Scarcity → Choice → Opportunity cost. If a JAMB question asks about the "basic economic problem" or why economics is studied, think scarcity first. Be careful of options like "unlimited resources", which are designed to trick you by reversing the correct idea.