Scarcity refers to the limited nature of resources, meaning that choosing to allocate resources to one area (like researching a cure for breast cancer) means those resources cannot be used elsewhere (like researching cures for lymphoma).

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Scarcity Means

Question 17

Multiple Choice

Scarcity means

A) time and resources spent researching a cure for breast cancer are time and resources that could have been spent researching cures for lymphoma.
B) 25 year olds might be more willing to start a family than 35 year olds.
C) government funding of federal programs equals the amount paid in taxes.
D) all consumers are assumed to have limited financial resources.
E) money flows in a circle.

Correct Answer: