Scarcity refers to
A) a shortage in a good or service.
B) the ability of society to consume all that it produces.
C) the inability of society to satisfy all human wants because of limited resources.
D) the inability of an individual to purchase a good or service due to her limited income.

Question

Quizplus · Accepted Answer

Scarcity refers to the fact that resources are limited and cannot satisfy all human wants and needs. This is a fundamental concept in Economics and is the basis for why choices must be made regarding the allocation of resources. Option A is a consequence of scarcity, not a definition of it. Option B is an incorrect description of the concept of scarcity. Option D is also a consequence of scarcity and not a definition of it.

Scarcity Refers to