To economists,scarcity means that
A) limited wants cannot be satisfied by the unlimited resources.
B) a person looking for work is not able to find work.
C) the number of people without jobs rises when economic times are bad.
D) there can never be answers to the what, how or for whom questions.
E) unlimited wants cannot be satisfied by the limited resources.

Question

Quizplus · Accepted Answer

Scarcity refers to the limited availability of resources to satisfy unlimited wants and needs. Therefore, option E is the correct choice as it expresses this concept accurately. Option A is similar but confusingly refers to limited wants not being satisfied by unlimited resources which is the reverse of the meaning of scarcity. Options B and C refer to unemployment which is not the same as scarcity. Option D is incorrect as the questions of what to produce, how to produce it, and for whom to produce it are central to economic decision making despite the constraints imposed by scarcity.

To Economists,scarcity Means That