Scarcity of resources:
A) limits productive capacity.
B) does not apply to advanced economies.
C) is theory, not fact.
D) applies only to natural resources.

Question

Quizplus · Accepted Answer

Scarcity of resources limits the productive capacity of an economy because it restricts the amount of goods and services that can be produced due to limited availability of resources such as labor, capital, and natural resources. This concept applies universally, not just to natural resources or specific economies, making the other options incorrect.

Scarcity of Resources