Which of the following items would be considered scarce?
A) water
B) diamonds
C) potato chips
D) All of the above are scarce.

Question

Quizplus · Accepted Answer

Scarcity means that the item is limited in availability or supply relative to demand, and this applies to all three options listed: water, diamonds, and potato chips. Water is a scarce resource in many areas of the world where it is not readily available or is contaminated. Diamonds are naturally limited in supply and therefore are a scarce resource as well. Potato chips may seem like a common item, but they are scarce in the sense that they require resources to produce (potatoes, oil, etc.) and therefore cannot be infinite in supply.

Which of the Following Items Would Be Considered Scarce