Scarcity
A) is the inability to satisfy all our wants.
B) leads to higher prices.
C) applies only to people living in poverty.
D) is not something that affects very rich people.
E) used to exist everywhere but has been eliminated in advanced economies.

Question

Quizplus · Accepted Answer

Scarcity refers to the limited availability of resources, which results in the inability to satisfy all our wants. This means that we must make choices and prioritize which wants and needs are most important to us. It also leads to higher prices since goods and services become more valuable due to their limited supply. Scarcity applies to all people, regardless of income level, as there are always more wants than resources available to fulfill them. While advancements and improvements in technology and production have helped alleviate scarcity to some extent, it still exists in every economy.