The fundamental economic problem in every society is

1. Analyze the question The question asks for the fundamental economic problem that every society faces, regardless of how rich or poor it is.

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

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

Scarcity leads to choice, and choice leads to opportunity cost.

3. Go through the options

• A. The large number of the unemployed: Unemployment is a symptom or a macroeconomic problem. It is not found in every society to the same degree, and it is not the root problem.
• B. Limited supply of productive resources: This is scarcity itself. Resources are limited relative to unlimited wants, and this affects every society, rich or poor.
• C. Inadequate supply of money: Money is only a medium of exchange. Even with plenty of money, resources would still be scarce.
• D. Corruption and mismanagement: These are governance problems. They can worsen scarcity but are not the fundamental cause.

4. Answer The correct answer is B. Limited supply of productive resources.

5. Exam tip Whenever you see "fundamental economic problem" or "basic economic problem," think SCARCITY. Look for the option that talks about limited resources versus unlimited wants. Remember the chain: Scarcity → Choice → Opportunity Cost.