📚 Learning Guide
Understanding Scarcity
medium

In the context of economic decision-making, which of the following best illustrates the concept of scarcity and the allocation of resources?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

A country chooses to produce more healthcare services at the expense of military spending.

B

A bakery offers the same price for all types of bread regardless of demand.

C

A city builds more roads without considering traffic patterns.

D

A farmer plants more corn because there is plenty of water available.

Understanding the Answer

Let's break down why this is correct

Answer

Scarcity means that there are limited resources available to meet unlimited wants and needs. This concept is essential in economic decision-making because it forces individuals and societies 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 fruits and vegetables or snacks, knowing they can't afford both. This decision illustrates scarcity because the family has to allocate their limited money to satisfy their needs as best as they can. By understanding scarcity, we can better appreciate the importance of making thoughtful choices about how we use our resources.

Detailed Explanation

This choice shows scarcity because the country has limited resources. Other options are incorrect because This option misunderstands demand; This choice ignores planning.

Key Concepts

economic decision-making
allocation of resources
Topic

Understanding 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.