Which of the following best describes the concept of 'limited life' in economics?

• A. Resources are finite and cannot satisfy all human wants.
• B. Markets always reach equilibrium without any constraints.
• C. Government intervention removes all limitations in the economy.
• D. Economic agents have unlimited access to goods and services.

Answer: (A)

Verified step by step guidance

1. Understand that the concept of 'limited life' in economics refers to the finite nature of resources or economic entities, meaning they do not last forever or are not unlimited.
2. Recognize that 'limited life' is often associated with the scarcity of resources, which means resources are finite and cannot satisfy all human wants, leading to the need for choices and trade-offs.
3. Evaluate each option by comparing it to the definition of 'limited life':
4. - 'Resources are finite and cannot satisfy all human wants' aligns with the idea of scarcity and limited availability, which is central to 'limited life'.
5. - The other options describe market equilibrium, government intervention, or unlimited access, which do not capture the essence of 'limited life' as a concept about finiteness and scarcity.