📚 Learning Guide
Impact of Limited Resources
easy

What does the concept of scarcity in economics primarily refer to?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

Unlimited resources available to everyone

B

A situation where resources are insufficient to meet all wants

C

The abundance of goods and services in a market

D

The ability of consumers to purchase any product they desire

Understanding the Answer

Let's break down why this is correct

Answer

Scarcity in economics refers to the idea that there are not enough resources to satisfy all our wants and needs. This means that while we may have many desires, the resources like money, time, and materials are limited. For example, if a farmer has only a small amount of land, they cannot grow enough food to feed everyone who needs it, leading to choices about what to plant and how much to sell. Because of scarcity, people and societies must make decisions about how to use their resources wisely. This concept helps us understand why we sometimes have to prioritize certain needs over others.

Detailed Explanation

Scarcity means there are not enough resources to satisfy everyone's wants. Other options are incorrect because This option suggests there are endless resources for everyone; This choice talks about having lots of goods and services.

Key Concepts

scarcity
Topic

Impact of Limited Resources

Difficulty

easy level question

Cognitive Level

understand

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