Scarcity refers to the fact that:
A) some goods are scarce.
B) something is scarce.
C) one must make choices given the resource limitations he or she faces.
D) there is no long-term benefit to studying economics.

Question

Quizplus · Accepted Answer

Scarcity means that resources are limited relative to people's unlimited wants and desires. As a result, people must make choices about how they allocate these scarce resources, which involves giving up one opportunity to pursue another. This is the fundamental concept in economics, and understanding it helps individuals and societies make better decisions about how to use their resources. Option A is a partial definition of scarcity, while B is vague and unhelpful. Option D is untrue and has no relevance to the concept of scarcity.

Scarcity Refers to the Fact That