Why is there scarcity?
A) Because the opportunity set determines this.
B) Because theory dictates it.
C) Because our unlimited wants exceed our limited resources
D) Because human wants are limited.

Question

Quizplus · Accepted Answer

Scarcity exists because human wants for goods and services exceed the quantity of goods and services that can be produced using all available resources. This fundamental economic problem arises because resources are finite while desires are infinite, leading to the need for allocation and prioritization in the use of resources.

Why Is There Scarcity