Scarcity,as defined by an economist,means:
A) demand exceeds supply at the current market price.
B) consumers are too poor to purchase the available goods and services.
C) supply exceeds demand at the current market price.
D) the desire for goods exceeds our ability to produce them with limited available resources.

Question

Quizplus · Accepted Answer

Scarcity in economics refers to the gap between the unlimited wants and needs of society and the finite resources available to satisfy them. This means that the desire for goods and services is greater than our ability to produce them with limited available resources. Therefore, option D is the correct definition of scarcity. Options A and C are incorrect as they describe situations where there is a balance of supply and demand at the current market price. Option B is also incorrect as it assumes that scarcity is caused by the lack of purchasing power of consumers, whereas scarcity is a fundamental concept related to the availability of resources.

Scarcity,as Defined by an Economist,means