Economics problems arise in all societies because

Analyze the question: It asks for the root cause of economic problems that exist in every society, rich or poor.

Explain the concept: The basic economic problem is scarcity. Human wants are unlimited, but resources (land, labour, capital, entrepreneurship) are limited in supply. Because of this, every society must make choices about:

• What to produce
• How to produce it
• For whom to produce it

Choice leads to opportunity cost, and that is why economic problems arise.

Solution, option by option:

• A. Mismanagement by leaders: This may worsen problems in some countries, but it is not universal. Even a well-governed society faces scarcity.
• B. No proper planning: Same reasoning. Poor planning can aggravate problems, but good planning does not remove scarcity.
• C. Resources are not in adequate supply: Correct. Limited resources against unlimited wants is the root cause of economic problems in all societies.
• D. Services of economists not employed: Economists help manage scarcity, but their absence does not create it.

**Answer: C.

Tip: When you see "why do economic problems arise in all societies", think scarcity. Look for options like "limited resources", "unlimited wants", or "inadequate supply". Options that blame people (leaders, planners, economists) are usually distractors because they are not universal.