Scarcity
A)affects both market and public sector decision making.
B)affects market, but not public sector decision making.
C)affects public sector, but not market decision making.
D)is really not an issue in such a wealthy nation as the United States.

Question

Quizplus · Accepted Answer

Scarcity is a fundamental economic problem that affects both market and public sector decision making. In a market economy, scarcity leads to competition among producers for limited resources, driving up prices and creating incentives for innovation and efficiency. In the public sector, scarcity creates trade-offs between different policy goals and requires prioritization of spending and resource allocation. Thus, scarcity is a key consideration in both market and public sector decision making. Option B, C, and D are incorrect as scarcity affects both market and public sector decision making.