📚 Learning Guide
Impact of Limited Resources
easy

How does the concept of scarcity influence economic decision-making in society?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

It requires prioritizing resource allocation based on needs and wants.

B

It suggests that resources are always abundant and easily accessible.

C

It eliminates the need for economic policies and regulations.

D

It encourages unlimited consumption without consequences.

Understanding the Answer

Let's break down why this is correct

Answer

Scarcity means that there are not enough resources to meet all our wants and needs. This limited availability forces individuals and societies to make choices about how to use their resources wisely. For example, if a school has a limited budget, it must decide whether to spend money on new computers or sports equipment. This decision affects what students will have access to, showing how scarcity shapes priorities and choices in the economy. Ultimately, understanding scarcity helps us recognize the importance of making informed decisions to allocate resources effectively.

Detailed Explanation

Scarcity means we have limited resources. Other options are incorrect because This idea is wrong because resources are not always easy to find; This is incorrect since scarcity makes rules necessary.

Key Concepts

Scarcity
Resource Allocation
Economic Decision-Making
Topic

Impact of Limited Resources

Difficulty

easy level question

Cognitive Level

understand

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