Why does economic scarcity exist?
A) because people have wants that are unlimited relative to the availability of resources to satisfy those wants
B) because governments have the means to provide as many services as it decides to
C) because individuals do NOT have to make choices
D) because NOT everyone has unlimited wants

Question

Why does economic scarcity exist?  
A) because people have wants that are unlimited relative to the availability of resources to satisfy those wants 
B) because governments have the means to provide as many services as it decides to 
C) because individuals do NOT have to make choices 
D) because NOT everyone has unlimited wants

Quizplus · Accepted Answer

Economic scarcity exists because people have wants that are unlimited relative to the availability of resources to satisfy those wants. This means that there are always more desires than there are resources to fulfill them, leading to scarcity. Governments cannot provide as many services as they decide to because resources are limited, and individuals must make choices due to scarcity. The fact that not everyone has unlimited wants is not the primary reason for economic scarcity.

Why Does Economic Scarcity Exist