The problem of scarce resources:
A) can be solved in a market economy, but not in a command economy.
B) can be solved if all resources are jointly owned by the public and private sectors.
C) implies that the resources are not freely available.
D) arises because all natural resources are owned by the government in every country.
E) can be solved by lowering taxes in an economy.

Question

Quizplus · Accepted Answer

Scarce resources by definition are not freely available, which creates the problem of allocating them efficiently. A market economy attempts to address this issue through the forces of supply and demand, while a command economy relies on government planning. Joint ownership of resources, lowering taxes, or government ownership of natural resources do not directly address the problem of scarce resources.

The Problem of Scarce Resources