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

Question

Quizplus · Accepted Answer

Scarcity is the basic economic problem and refers to the finite nature of resources in relation to unlimited wants and needs. It leads to the need for choices to be made and the concept of opportunity cost. Scarcity exists in all societies regardless of their level of development or wealth. It affects everyone, not just people in poverty. Scarcity also results in higher prices as demand exceeds supply.