If an economy is operating efficiently and with full employment, the production of more of one commodity will necessarily lead to less of something else being produced because of:
A) the unlimited wants of people.
B) perfectly adaptability of resources in the production of various goods.
C) scarcity.
D) the lack of money capital.

Question

Quizplus · Accepted Answer

When an economy is operating with full employment, it means that all available resources are being used to their maximum potential. However, resources are still limited in quantity, and therefore, producing more of one commodity means diverting resources from producing something else. This is known as scarcity, wherein the unlimited wants and needs of people cannot be fulfilled due to limited resources. Thus, option C is the correct answer. Option A is incorrect because unlimited wants do not necessarily lead to less production, and option B is incorrect as resources are not perfectly adaptable. Option D is not relevant to this scenario.

If an Economy Is Operating Efficiently and with Full Employment