📚 Learning Guide
Scarcity in Economics
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In economics, how does the concept of scarcity relate to the idea of unlimited wants?

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Learning Path

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Choose the Best Answer

A

Scarcity means all wants can be fulfilled.

B

Scarcity describes the limited nature of resources in relation to unlimited wants.

C

Scarcity is not related to wants at all.

D

Scarcity only applies to physical goods.

Understanding the Answer

Let's break down why this is correct

Answer

Scarcity in economics means that there are limited resources to meet our needs and wants. This is important because people always have unlimited wants, like wanting more food, clothes, or gadgets. Since we cannot have everything we desire due to limited resources, we must make choices about how to use what we have. For example, if you have a limited amount of money, you might have to decide between buying a new video game or saving for a new bicycle. This situation shows how scarcity forces us to prioritize our wants and make decisions that can affect our overall satisfaction.

Detailed Explanation

Scarcity means there are not enough resources to meet all our wants. Other options are incorrect because This answer suggests that we can have everything we want; This answer ignores the connection between scarcity and wants.

Key Concepts

scarcity
unlimited wants
Topic

Scarcity in Economics

Difficulty

medium level question

Cognitive Level

understand

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