Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A country producing more goods than it can sell, leading to waste.
B
A family deciding to spend their savings on a vacation instead of home renovations.
C
A city experiencing a surplus of water due to abundant rainfall.
D
A government creating unlimited currency to solve economic issues.
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity in economics means that there are limited resources to meet unlimited wants and needs. For example, imagine a small town that has only one bakery. If everyone in the town wants to buy bread, but the bakery can only make a certain number of loaves each day, there won't be enough bread for everyone. This situation shows scarcity because the demand for bread exceeds the supply available. It forces people to make choices, like deciding how much bread they can buy or whether to wait for more to be baked.
Detailed Explanation
This choice shows scarcity because the family has limited money. Other options are incorrect because This option suggests there is too much of something; Here, there is plenty of water.
Key Concepts
Scarcity in Economics
Resource Allocation
Trade-offs
Topic
Scarcity in Economics
Difficulty
easy level question
Cognitive Level
understand
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