Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It forces individuals to make trade-offs when allocating resources.
B
It allows for unlimited consumption of goods and services.
C
It eliminates the need for prioritizing needs and wants.
D
It ensures that all resources are distributed equally.
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity means that there are limited resources to meet unlimited wants and needs. This situation forces individuals, businesses, and governments to make choices about how to use their resources effectively. For example, if a town has a limited budget for building roads, it must decide whether to improve existing roads or build new ones, as it cannot do both. These decisions often involve weighing the benefits of each option against its costs, which is a key part of economic decision-making. Ultimately, scarcity drives people to prioritize their needs and make choices that can affect the whole economy.
Detailed Explanation
Scarcity means there are not enough resources for everyone. Other options are incorrect because Some might think scarcity means we can have everything we want; It's a common mistake to think scarcity means we don't need to choose.
Key Concepts
Scarcity
Trade-offs in Economics
Resource Allocation
Topic
Scarcity in Economics
Difficulty
easy level question
Cognitive Level
understand
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