Economics is about the allocation of scarce resources. Which of the following is NOT an example of economic scarcity?
A) If Steve goes to see a movie on Saturday, he will not be able to afford buying ice cream.
B) If Jenny studies for her economics quiz this evening, she will not have time to walk her dog.
C) If General Motors increases its production of SUVs this year, it will have to spend more on advertising.
D) If Barnes and Noble bookstore increases the number of titles it carries, it will have to reallocate shelf space to accommodate the new titles.

Question

Quizplus · Accepted Answer

Increasing production and spending more on advertising are not indicative of economic scarcity. Economic scarcity refers to limited resources, such as time or money, that must be allocated between competing wants or needs. Option A represents a trade-off between seeing a movie and buying ice cream, option B represents a trade-off between studying and walking a dog, and option D represents a trade-off between different types of books occupying shelf space.

Economics Is About the Allocation of Scarce Resources