Scarcity exists because
A) human wants exceed the resources available to satisfy them.
B) some individuals have low income.
C) the costs of production are high.
D) some people make bad economic decisions.
E) people take too much leisure time.

Question

Quizplus · Accepted Answer

Scarcity is the fundamental economic problem where the resources like land, labor, and capital are finite, but human wants are infinite. Therefore, it creates a situation where people have to make choices and trade-offs to allocate resources effectively to satisfy their needs and wants. The other options (B, C, D, and E) are not the primary reasons for scarcity in the economy.

Scarcity Exists Because