The existence of scarcity means that
A) there are not enough resources to satisfy unlimited human wants.
B) firms will increase their production to eliminate the scarcity.
C) the government will step in to eliminate the scarcity.
D) firms working with the government will allocate resources to eliminate the scarcity.

Question

Quizplus · Accepted Answer

Scarcity is an economic condition that exists when there are limited resources to satisfy unlimited human wants. This means that it is impossible to produce enough goods and services to satisfy everyone's needs and wants. This leads to the need for individuals and societies to make choices about how to allocate resources, which is the central problem of economics. The other choices are incorrect because increasing production or government intervention may help alleviate scarcity to some extent, but scarcity will always exist to some degree.

The Existence of Scarcity Means That