The basic and essential economic problems in a community are related to choice and________

1. Analyze the question The question asks what the basic economic problem is, alongside choice. This is a core concept in introductory economics.

2. Explain the concept The basic economic problem is scarcity. Human wants are unlimited, but the resources available to satisfy them (land, labour, capital, entrepreneurship) are limited. Because of this, people, firms, and governments must choose how to use resources. Choosing one option means giving up another, and what you give up is called the opportunity cost.

Scarcity leads to the three basic questions every society must answer:

• What to produce, and in what quantity?
• How to produce it?
• For whom to produce it?

3. Solution: check each option

• A. Freedom: Freedom is not an economic problem. It describes the ability to act, not a shortage of resources.
• B. Scarcity: Correct. Limited resources against unlimited wants force choices, so scarcity and choice are inseparable.
• C. Social class: This is a sociological idea and has nothing to do with the basic economic problem.
• D. Politics: Politics may influence economic decisions, but it is not the root of the economic problem.

4. Answer The basic and essential economic problems in a community are related to choice and scarcity, which is option B.

5. Exam tip Remember the chain: Unlimited wants + Limited resources → Scarcity → Choice → Opportunity cost. Whenever JAMB asks about the "basic economic problem," think "scarcity and choice."