Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It eliminates the need for choices as resources are infinite.
B
It forces individuals and societies to prioritize their needs and allocate resources effectively.
C
It means that resources are available but not utilized.
D
It suggests that all resources are equally valued by everyone.
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity means that there are limited resources available to meet our unlimited wants and needs. This idea is important in economics because it forces people and businesses to make choices about how to use their resources wisely. For example, if a family has a limited budget for groceries, they must decide whether to buy healthy fruits and vegetables or cheaper snacks. This decision involves weighing the benefits of each option and considering what is most important to them. Ultimately, scarcity leads to trade-offs, where choosing one thing means giving up another, shaping how we make decisions in everyday life.
Detailed Explanation
Scarcity means there are limited resources. Other options are incorrect because This idea is wrong because resources are not infinite; This option suggests resources are there but not used, which is not true.
Key Concepts
Scarcity
Resource Allocation
Economic Decision-Making
Topic
Understanding Scarcity
Difficulty
medium level question
Cognitive Level
understand
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