CBSE Class 11-commerce Answered

Yes, it is rightly said that the problem of choice is unavoidable in the ordinary business of life. In Economics, the problem of choice making is called an economic problem.The problem of choice arises out of limited resources and unlimited wants and that resources have alternate uses.

For example in businesses, there is a problem of choice in the technique production.
For instance, production of cloth is possible either by handlooms or by modern machines. This problem is concerned with the efficient use of resources which implies more production with low cost. Thus, one needs to decide the efficient technique of production which uses the least amount of scarce resources to provide the same amount of output.