The problem of scarcity:
A)exists because resources are limited relative to wants.
B)exists because resources are unlimited relative to wants.
C)can be eliminated through appropriate government intervention into markets.
D)does not exist in communist societies.

Question

The problem of scarcity:
A)​exists because resources are limited relative to wants.
B)​exists because resources are unlimited relative to wants.
C)​can be eliminated through appropriate government intervention into markets.
D)​does not exist in communist societies.

Quizplus · Accepted Answer

Scarcity exists because resources are limited relative to wants. This means that there are not enough resources to fulfill all human wants and needs. It is a fundamental economic problem that cannot be eliminated completely. While government intervention can help mitigate scarcity through policies such as redistribution of wealth or price controls, it cannot completely eliminate the problem. In fact, scarcity is a prevailing issue in both capitalist and communist societies.

The Problem of Scarcity