In Colorado, there has been a drought, and rural communities are fighting with urban areas over water. This statement best represents this economic concept:
A)Resources are scarce.
B)Resources should be used as efficiently as possible to achieve society's goals.
C)When markets don't achieve efficiency, government intervention can improve society's welfare.
D)Government policies can change spending.

Question

Quizplus · Accepted Answer

The statement highlights the fact that there is a scarcity of water in Colorado due to the drought, leading to a conflict between rural and urban areas over its allocation. The economic concept of scarcity refers to the limited availability of resources relative to the unlimited wants and needs of society. In this case, water is a scarce resource that needs to be allocated efficiently to meet the needs of both rural and urban areas.

In Colorado, There Has Been a Drought, and Rural Communities