Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Unlimited resources available to satisfy needs and wants
B
Limited resources available to satisfy unlimited needs and wants
C
Resources that are equally distributed among the population
D
Resources that can be replenished immediately
Understanding the Answer
Let's break down why this is correct
Answer
Scarcity in economics refers to the basic problem that there are limited resources but unlimited wants and needs. This means that while people always want more things, like food, clothing, and entertainment, there isn't enough of everything to satisfy everyone completely. For example, if a farmer can only grow a certain amount of crops each year, there won't be enough food for everyone if demand is high. Because of scarcity, choices must be made about how to use resources wisely, leading to trade-offs where gaining one thing means giving up another. Understanding scarcity helps us see why prices change and why we need to prioritize what we truly need.
Detailed Explanation
Scarcity means we have limited resources, like money or time, but many needs and wants. Other options are incorrect because This option suggests there are endless resources; This choice implies resources are shared equally.
Key Concepts
resources
Topic
Understanding Scarcity
Difficulty
easy level question
Cognitive Level
understand
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