Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Scarcity forces individuals to make choices about resource allocation.
B
Unlimited resources can satisfy all human wants without any choice.
C
Scarcity can lead to prioritization of resources during crises like wars.
D
The concept of scarcity only applies to physical goods, not services.
E
Understanding scarcity is essential for effective economic decision-making.
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity in economics means that there are not enough resources to satisfy all our wants and needs. This leads to the idea that we must make choices about how to use our limited resources effectively. For example, if you have only enough money to buy either a book or a video game, you must choose one, which shows how scarcity forces us to prioritize what we value more. As a result, scarcity often leads to trade-offs, where choosing one option means giving up another. Understanding scarcity helps us see why managing resources wisely is important in both personal finance and broader economic policies.
Detailed Explanation
All the statements misunderstand scarcity. Other options are incorrect because This option suggests that scarcity does not force choices; This statement implies that if resources were unlimited, we wouldn't need to choose.
Key Concepts
Scarcity
Resource allocation
Economic decision-making
Topic
Impact of Limited Resources
Difficulty
easy level question
Cognitive Level
understand
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