A consequence of the economic problem of scarcity is that
A)Choices have to be made about how resources are used.
B)There is never too much of any good or service produced.
C)The production of goods and services must be controlled by the government.
D)The production possibilities curve is bowed outward.

Question

Quizplus · Accepted Answer

Scarcity means that there are limited resources but unlimited wants and needs, so choices have to be made about how those resources are allocated. This is the fundamental issue of economics and leads to the need for making trade-offs and prioritizing certain goods and services over others.

A Consequence of the Economic Problem of Scarcity Is That