Scarcity in economics means that:
A)we do not have sufficient resources to produce all of the goods and services we want.
B)the wants of people are limited.
C)there must be poor people in rich countries.
D)shortages exist in nearly all markets.

Question

Quizplus · Accepted Answer

Scarcity refers to the basic economic problem of having unlimited wants and needs with limited resources to fulfill them. This means we cannot produce all the goods and services we want, leading to trade-offs and choices. Hence, option A is the correct definition of scarcity, while B, C, and D are not accurate descriptions.

Scarcity in Economics Means That