Which of the following statements best describes the problem of scarcity?
A) Scarcity means that shortages occur at the existing market price.
B) It is impossible to satisfy unlimited human wants with limited resources.
C) When there is scarcity, individuals do not face trade-offs.
D) As a result of scarcity, individuals do not have the ability to make choices.

Question

Quizplus · Accepted Answer

The problem of scarcity refers to the fact that there are limited resources to meet unlimited human wants and needs. This means that individuals and societies must make choices and trade-offs in order to allocate resources efficiently. Option A is a result of scarcity, but doesn't fully describe the problem. Option C is incorrect because individuals faced with scarcity must make trade-offs. Option D is incorrect because individuals still have the ability to make choices, but those choices are constrained by limited resources.

Which of the Following Statements Best Describes the Problem of Scarcity