Statement I.Labor and capital are resources.
Statement II.Scarcity has been largely eliminated from our economy.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

Statement I is true as labor and capital are considered resources in economics. However, Statement II is false as scarcity still exists in our economy, though it may vary in degree depending on the specific resource being considered. Scarcity is a fundamental concept in economics, referring to the limited availability of resources relative to wants and needs, which necessitates choice and trade-offs.

Statement I.Labor and Capital Are Resources