One of the fundamental economic problem of every society is

Step 1: Analyze the question The question asks for a fundamental economic problem that every society faces, no matter how rich or poor it is.

Step 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, every society must make choices. This leads to the three (sometimes four) fundamental questions of economics:

1. What to produce, and in what quantities?
2. How to produce it, meaning which methods and resources to use?
3. For whom to produce, meaning how goods are distributed?
4. (Sometimes added) How to provide for growth over time.

All of these come down to one thing: allocating scarce resources among competing uses.

Step 3: Evaluate the options

• A. Allocation of scarce resource: Correct. This is the core of economic problems: scarcity forces choice and allocation.
• B. Availability of market: A market is one way of solving the allocation problem. It is not the problem itself.
• C. Consumption pattern of inhabitants: This is a feature of society, not a universal economic problem.
• D. Presence of middle man: Middlemen are part of distribution, and they are not a fundamental problem.
• E. Inadequate labour force: This may affect some countries, but it is not a problem common to all societies. It is also just one example of scarcity.

Step 4: Answer The correct option is A. allocation of scarce resource.

Exam tip: When you see "fundamental economic problem," think SCARCITY → CHOICE → ALLOCATION. Any option that mentions scarcity, choice, or allocation of resources is usually the right one.