Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It leads to an equal distribution of resources.
B
It requires prioritization of resource use based on needs.
C
It eliminates competition for resources.
D
It guarantees that all resources are used efficiently.
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity means that there are limited resources available to meet unlimited wants and needs. Because resources like money, time, and materials are not infinite, societies must make choices about how to use them effectively. This leads to resource allocation, which is the process of deciding where and how to distribute resources. For example, if a city has a limited budget, it must choose whether to spend money on building new schools or improving public transportation. This decision affects the community's overall well-being, showing how scarcity forces people and governments to prioritize their needs.
Detailed Explanation
Scarcity means there are not enough resources for everyone. Other options are incorrect because Some might think scarcity means everyone gets the same amount; It might seem like scarcity would stop competition, but it actually makes people compete for limited resources.
Key Concepts
scarcity
resource allocation
Topic
Scarcity in Economics
Difficulty
medium level question
Cognitive Level
understand
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