The logical implication of the scarcity problem is that
A) one will never be satisfied with what one has.
B) as wealth increases,making trade-offs becomes less necessary.
C) as wealth decreases,making trade-offs becomes less necessary.
D) choices must be made.
E) resources need to be made unlimited.

Question

Quizplus · Accepted Answer

The scarcity problem refers to the fact that resources are limited, while people's wants and needs are unlimited. This means that choices must be made about how to allocate those limited resources. Therefore, the logical implication of the scarcity problem is that choices must be made. Option A, B, and E are incorrect as they do not logically follow from the scarcity problem. Option C is also incorrect as making trade-offs becomes even more necessary when wealth decreases, as people have to prioritize their spending even more carefully.

The Logical Implication of the Scarcity Problem Is That