In economic analysis, people's resources are
A) limited and their wants are unlimited.
B) unlimited and their wants are also unlimited.
C) limited and their wants are also limited.
D) unlimited and their wants are limited.

Question

Quizplus · Accepted Answer

This is the principle of scarcity, which is a fundamental concept in economics. People have limited resources (such as time and money), but their wants and needs are seemingly unlimited. As a result, people must make choices about how to allocate their limited resources in order to satisfy their most important wants and needs.

In Economic Analysis, People's Resources Are