Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Unlimited wants and limited resources
B
High production costs
C
Government regulations
D
Market monopolies
Understanding the Answer
Let's break down why this is correct
Answer
The primary reason that leads to scarcity in economics is the imbalance between limited resources and unlimited wants. Resources, like land, labor, and raw materials, are finite, meaning there is only so much of them available. On the other hand, people have endless desires for goods and services, such as food, clothing, and technology. For example, if a farmer can only grow a certain amount of crops due to limited land, but many people want those crops, there will not be enough to satisfy everyone. This situation creates scarcity, forcing choices about how to allocate resources effectively.
Detailed Explanation
People always want more things, like toys or food. Other options are incorrect because Some might think that if it costs a lot to make things, that causes scarcity; It's a common belief that rules from the government create scarcity.
Key Concepts
limited resources
Topic
Scarcity in Economics
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.