Which of the following best describes scarcity?
a. Resources are unlimited but there is a scarcity of uses for them.
b. Resources are scarce when compared to the demand for them.
c. There is a scarcity of funding for resource conservation.
d. Resources and resource needs are equally scarce.
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The Correct Answer for the given question is Option b. Resources are scarce when compared to the demand for them.
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Answer Explanation
Resources are scarce when compared to the demand for them.There are limited resources available to us. We have only so much land, so many factories, so much oil, and so many people at any one time. However, our wants, our desires for the things we can produce with those resources, are not limited. We always want more and better housing, more and better education, more and better of nearly everything. It would be impossible to have economics if our resources were also unlimited. Since our resources are limited, we cannot say yes to everything. Saying yes to one thing means saying no to another. We have to make choices whether we like it or not.
Unlimited wants constantly collide with the limits of our resources, forcing us to choose which activities to pursue and which to avoid. Scarcity is the condition of having to choose among alternatives. It is a scarce good when the choice of one alternative requires the sacrifice of another. As resources are limited, scarcity occurs when the supply of a resource exceeds the demand for it.
Due to scarcity, consumers are forced to make choices about how best to allocate resources in order to satisfy all basic needs and as many wants as possible.The fundamental problem of economics is scarcity: the allocation of limited means to satisfy unlimited wants and needs. Natural resources, even those that are free, may become scarce if they are expensive to obtain or consume, or if consumer demand for previously unwanted resources expands due to changing preferences or newly discovered uses.
Scarcity FAQs
Approximately what percentage of the world’s economies experience scarcity?
a) 10%
b) 40%
c) 85%
d) 100%
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The Correct Answer for the given question is Option d) 100%
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The phenomenon of scarcity stems from the fact that
A) most economies production methods are not very good.
B) in most economies, wealthy people consume disproportionate quantities of goods and services.
C) governments restrict the production of too many goods and services.
D) resources are limited.
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The Correct Answer for the given question is Option D) resources are limited.
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What does the concept of scarcity explain? check all that apply.
a) why a product could lose significant value over time.
b) why people continue to purchase different products.
c) why consumers are willing to pay high prices for items.
d) why decisions must be made on how to use resources
e) why resources can be both renewable and nonrenewable.
f) why a single resource has more value than another resource.
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The Correct Answer for the given question is Option C, D and F
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When economists speak of scarcity, they are referring to the
a. condition in which society is not employing all its resources in an efficient way.
b. condition in which people’s wants outstrip the limited resources available to satisfy those wants.
c. economic condition that exists in only very poor countries of the world.
d. condition in which society produces too many frivolous goods and not enough socially desirable goods.
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The Correct Answer for the given question is b. condition in which people’s wants outstrip the limited resources available to satisfy those wants.
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Which of the following statements about scarcity is true?
a. Scarcity refers to the situation in which unlimited wants exceed limited resources.
b. Scarcity is not a problem for the wealthy.
c. Scarcity is only a problem when a country has too large a population.
d. Scarcity only arises when there is a wide disparity in income distribution.
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The Correct Answer for the given question is a. Scarcity refers to the situation in which unlimited wants exceed limited resources.
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Which of the following describes the reason why scarcity exists?
A. Wants exceed the resources available to satisfy them.
B. Governments make bad economic decisions.
C. The gap between the rich and the poor is too wide.
D. There is too much unemployment.
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The Correct Answer for the given question is A. Wants exceed the resources available to satisfy them.
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Which of the following is an example of scarcity, rather than shortage?
a) A popular toy is sold out during the busy holiday season.
b) You have spent your last penny and payday is a week away.
c) A person wants an endless supply of everything but cannot have it.
d) Dairy items were rationed in America during World War II.
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The Correct Answer for the given question is c) A person wants an endless supply of everything but cannot have it.
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Which of the following illustrates the concept of scarcity?
a. More clean air is wanted than is available in large polluted metropolitan areas such as Mexico City.
b. There is usually more than one use of your free time in the evening.
c. There are many competing uses for the annual budget of your city, county, or state.
d. All of the above are correct.
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The Correct Answer for the given question is Option d. All of the above are correct.
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Which of the following are not cause of water scarcity
a) rapid growth of population
b) uneven distribution of water resources
c) construction of dams and resources
d) increase in demand
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The Correct Answer for the given question is Option c) construction of dams and resources
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MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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