Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Scarcity leads to the need for prioritizing choices based on resource availability.
B
Scarcity is only a concern for developing countries with limited resources.
C
Scarcity necessitates trade-offs in decision-making, both personally and socially.
D
Scarcity means that resources are always insufficient for everyone’s needs.
E
Scarcity can influence market prices and consumer behavior.
Understanding the Answer
Let's break down why this is correct
Answer
Economic scarcity means that there are limited resources available to meet unlimited wants and needs. This means that not everyone can have everything they want because resources like money, time, and materials are finite. For example, if there is a drought, there may not be enough water for all the crops people want to grow, leading to scarcity of food. When we talk about economic scarcity, we also think about how people must make choices about what to buy or use, as they cannot have it all. Thus, understanding scarcity helps us appreciate the importance of making wise decisions with our resources.
Detailed Explanation
All the statements misunderstand scarcity. Other options are incorrect because This suggests that scarcity only means we must choose wisely; This idea wrongly states that only developing countries face scarcity.
Key Concepts
Economic Scarcity
Resource Allocation
Trade-offs in Economics
Topic
Understanding Economic Scarcity
Difficulty
medium 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.