Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Unlimited human wants
B
Inefficient resource allocation
C
Government regulation
D
Technological advancements
Understanding the Answer
Let's break down why this is correct
Answer
The primary cause of scarcity in an economy is the limited nature of resources compared to the unlimited wants and needs of people. Resources such as land, labor, and capital are finite, meaning there is only a certain amount available for producing goods and services. For example, if a farmer has only a small piece of land, they can only grow a limited amount of crops, even though many people may want food. This imbalance between what is available and what is desired leads to scarcity, making it necessary for individuals and societies to make choices about how to use their resources wisely. Ultimately, scarcity forces us to prioritize our needs and find the best ways to fulfill them with what we have.
Detailed Explanation
People always want more things than what is available. Other options are incorrect because Some might think that wasting resources causes scarcity; It's a common belief that rules from the government create scarcity.
Key Concepts
Scarcity
Resource Allocation
Economic Decision-Making
Topic
Impact of Limited Resources
Difficulty
easy level question
Cognitive Level
understand
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