Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It leads to unlimited resources for all individuals.
B
It encourages prioritization and trade-offs in resource allocation.
C
It eliminates the need for economic choices altogether.
D
It guarantees equal distribution of resources among all members.
Understanding the Answer
Let's break down why this is correct
Answer
The principle of scarcity means that there are limited resources available to meet unlimited wants and needs in society. Because resources like money, time, and materials are not infinite, people and businesses must make choices about how to use them. For example, if a family has a limited budget, they might have to decide between buying groceries or going out to eat. This decision-making process forces individuals and societies to prioritize what is most important, often leading to trade-offs where choosing one option means giving up another. Ultimately, scarcity drives people to think carefully about their choices and find the best way to use their resources to meet their needs.
Detailed Explanation
Scarcity means there are not enough resources for everyone to have everything they want. Other options are incorrect because Some might think scarcity means everyone has plenty of resources; It's a common belief that scarcity removes the need to make choices.
Key Concepts
Economic Scarcity
Resource Allocation
Trade-offs
Topic
Understanding Economic Scarcity
Difficulty
medium level question
Cognitive Level
understand
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