Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Unlimited resources available to satisfy needs
B
Limited resources in relation to unlimited wants
C
Equal distribution of resources among all individuals
D
The ability to produce goods without any costs
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity in economics refers to the basic problem that we have limited resources but unlimited wants and needs. This means that there isn't enough of certain things, like money, time, or materials, to satisfy everyone’s desires fully. Because of scarcity, people and societies must make choices about how to use their resources effectively. For example, if a family has a limited budget, they might have to decide between buying groceries or saving for a vacation. This choice shows how scarcity forces us to prioritize what is most important to us.
Detailed Explanation
Scarcity means we have limited resources, like money or materials, but our wants are endless. Other options are incorrect because This option suggests there are unlimited resources, which is not true; This choice implies resources are shared equally, which doesn't happen in reality.
Key Concepts
scarcity
Topic
Fundamental Economic Choices
Difficulty
easy level question
Cognitive Level
understand
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