Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Choosing between saving for a vacation or paying off debt
B
Purchasing a new car and a new computer
C
Buying groceries and luxury items simultaneously
D
Spending all income on entertainment
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity means that there are not enough resources to meet all our needs and wants. When you have a limited budget, you must make choices about how to spend your money because you can't buy everything you want. For example, if you have $50 to spend on snacks and games, you might have to decide between buying a new video game or a lot of snacks for a party. This situation illustrates scarcity because you have to prioritize what is most important to you with the money you have. Ultimately, scarcity forces you to think carefully about your choices and how to best use your limited resources.
Detailed Explanation
Scarcity means having limited resources. Other options are incorrect because This choice suggests you can have everything you want; This option implies you can buy everything at once.
Key Concepts
Resource Allocation
Scarcity
Economic Efficiency
Topic
Resource Allocation and Scarcity
Difficulty
easy level question
Cognitive Level
understand
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