📚 Learning Guide
Scarcity in Economics
easy

Which of the following statements accurately describe the concept of scarcity in economics? (Select all that apply)

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Choose the Best Answer

A

Scarcity implies that resources are limited compared to human wants.

B

Scarcity means that there are enough resources to satisfy all human needs.

C

Scarcity necessitates making choices and trade-offs in resource allocation.

D

Scarcity is a situation that only occurs during economic recessions.

E

Scarcity affects both individuals and societies in their decision-making.

Understanding the Answer

Let's break down why this is correct

Answer

Scarcity in economics means that there are limited resources available to meet unlimited wants and needs. This means that people cannot have everything they desire because resources like time, money, and materials are finite. For example, if a farmer has only a small amount of land, they can only grow a certain number of crops, even though many people want more food. Scarcity forces individuals and societies to make choices about how to use their limited resources effectively. Thus, understanding scarcity helps us realize the importance of prioritizing our needs and making informed decisions about resource use.

Detailed Explanation

Scarcity means that resources are limited, and we can't have everything we want. Other options are incorrect because This statement is incorrect because it suggests that resources are not limited; This option is wrong because it implies that we can meet all needs.

Key Concepts

Scarcity
Resource Allocation
Decision-Making
Topic

Scarcity in Economics

Difficulty

easy level question

Cognitive Level

understand

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