Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries.
-A good or service is said to be scarce when:
A)its price is too low.
B)it is offered only to high income earners.
C)no one wishes to purchase it.
D)it cannot be transported easily.
E)at a price of zero, there is not enough to satisfy everyone's desire for it.

Question

Figure 5.1. The figure shows a linear production possibility curve representing a tradeoff faced by a country, between necessities and luxuries​. 
-A good or service is said to be scarce when:
A)its price is too low. 
B)it is offered only to high income earners. 
C)no one wishes to purchase it. 
D)it cannot be transported easily. 
E)at a price of zero, there is not enough to satisfy everyone's desire for it.

Quizplus · Accepted Answer

Scarce goods or services are those that are in limited supply relative to their demand. Even at a price of zero, there may not be enough to satisfy everyone's desire for the good or service. Therefore, option E is the correct choice. Options A, B, C, and D do not accurately reflect the concept of scarcity.

Figure 51 the Figure Shows a Linear Production Possibility Curve Representing