Scarcity exists because
A) there is a temporary disruption in the market supply.
B) there is a shortage of goods caused by a natural disaster.
C) there are not enough resources available to produce all the goods that people want.
D) there is a shortage of labor throughout the world.

Question

Quizplus · Accepted Answer

Scarcity exists because there are limited resources available to produce all the goods and services that people want. This means that choices have to be made about how to allocate these resources, and not everyone can have everything they want. This is a fundamental concept in economics, as it helps to explain why prices exist and why some goods and services are more expensive than others. Temporary disruptions in the market supply, shortages caused by natural disasters, and labor shortages may all contribute to scarcity in specific instances, but the underlying cause is always a lack of sufficient resources to meet unlimited wants and needs.

Scarcity Exists Because