Scarcity arises because
A) resources are finite and are inadequate to meet all human wants and needs.
B) import taxes depress the rate of growth of goods and services production.
C) international companies are slow to explore for new resources.
D) many countries waste goods because of inefficient political systems.

Question

Quizplus · Accepted Answer

Scarcity is the condition of limited resources relative to unlimited wants and needs. Resources such as land, labor, capital, and entrepreneurship are finite and cannot meet the unlimited desires of people. Therefore, scarcity arises because of the limited availability of resources. Choices B, C, and D are not correct as they do not explain the concept of scarcity accurately.

Scarcity Arises Because