Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Unlimited resources available for consumption
B
A situation where resources are limited while human wants are unlimited
C
The ability to produce goods without limitations
D
A condition of surplus in the market
Understanding the Answer
Let's break down why this is correct
Answer
In economics, the term 'scarcity' refers to the basic problem that resources are limited while human wants and needs are unlimited. This means that there are not enough resources, like money, time, or materials, to satisfy everyone's desires completely. For example, if a farmer can only grow a certain amount of crops each year, there may not be enough food for everyone if many people want to buy it. Because of scarcity, people and societies must make choices about how to use their resources effectively. This leads to important economic concepts like supply and demand, which help determine prices and availability of goods.
Detailed Explanation
Scarcity means there are not enough resources to satisfy all our wants. Other options are incorrect because This option suggests there are endless resources; This option implies we can make goods without limits.
Key Concepts
scarcity
Topic
Scarcity in Economics
Difficulty
easy level question
Cognitive Level
understand
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