Goods and services are scarce because
A)people are greedy
B)they are produced using scarce resources
C)firms keep production low in order to earn higher profits
D)they are produced by firms that seeks profits
E)government wants to maintain its power over the economy

Question

Quizplus · Accepted Answer

Goods and services are scarce because they are produced using scarce resources. Resources like land, labor, and capital are limited and cannot be used to produce an unlimited amount of goods and services. This makes goods and services scarce and creates competition for them in the market. The other choices (A, C, D, and E) do not accurately explain why goods and services are scarce.

Goods and Services Are Scarce Because