Whatever form an economic system may take, choice is essential for members of the community because resources are__________

1. Analyze the question The question asks why choice is essential in every economic system, whether capitalist, socialist, or mixed. We need the basic economic fact that forces people and societies to choose.

2. Explain the concept The central problem in Economics is scarcity. Human wants are unlimited, but the resources used to satisfy them (land, labour, capital, entrepreneurship) are limited. Because we cannot have everything we want, we must:

• Choose which wants to satisfy first (scale of preference)
• Give up some alternatives, which creates opportunity cost

This is why every society must answer the basic questions: what to produce, how to produce, and for whom to produce.

3. Step-by-step solution

• A. Scarce: Resources are limited relative to wants, so choice is unavoidable. ✔
• B. Unlimited: If resources were unlimited, there would be no need to choose, since everyone could have everything. ✘ (It is human wants that are unlimited.)
• C. Free: Free goods like air exist, but most resources have a cost, and being free would not force choice. ✘
• D. Many: Having many resources does not remove the problem. Even many resources can be insufficient for unlimited wants. ✘

4. Answer The correct option is A. scarce.

5. Exam tip Remember the chain: Scarcity → Choice → Scale of Preference → Opportunity Cost. If a question links "choice" to resources, the answer is almost always scarcity. Also remember: wants are unlimited, resources are scarce. JAMB often tests this confusion.