When wants and needs exceed the resources available to satisfy them

a$)$ Scarcity exists and decisions must be made about how to allocate limited

resources among competing uses.

b$)$ An economy is not able to operate at its natural rate of unemployment.

Government is required to identify what areas of the economy are most

deserving and direct resources and outputs to those areas.

d$)$ The forces of supply and demand must be relied on to answer the questions

what output tO produce, how to produce it$,$ and who gets to consume it