Scarcity implies that

Question

Quizplus · Accepted Answer

Scarcity means that resources are limited while human wants and needs are infinite. Hence, people must make choices on how to allocate their limited resources to satisfy their needs and wants. Therefore, option C is the best choice. Option A is partially correct but it does not fully capture the essence of scarcity. Option B is not necessarily true because firms might not have to become more efficient to address scarcity, they might need to find new resources or technologies. Option D is too extreme as non-renewable resources can be used as long as their usage is well-managed and planned.

Scarcity Implies That