Scarcity in economics means that: A) we often do not have sufficient resources to achieve our objectives. B) the wants of people are limited. C) there must be poor people in rich countries. D) shortages exist in nearly all markets.

Question

Hanna Holland

Business

8 April, 06:47

Scarcity in economics means that: A) we often do not have sufficient resources to achieve our objectives. B) the wants of people are limited. C) there must be poor people in rich countries. D) shortages exist in nearly all markets.

+5

Answers (2)

Know the Answer?

Miranda Cannon · Answer 1

The correct answer is letter "A": we often do not have sufficient resources to achieve our objectives.

Explanation:

Scarcity is the basic economic problem by which individuals have unlimited wants but count on limited resources to fulfill them. This situation pushes people to make trade-offs or give up part of the satisfaction of a need so other needs can also be satisfied.

Scarcity pushes individuals and organizations to allocate their resources efficiently so they can maximize their utility.

Patrick Wong · Answer 2

A) we often do not have sufficient resources to achieve our objectives

Explanation:

Scarcity is an economic problem that comes with scarce resources and unlimited wants. In this situation people have to decide on how to allocate resources better so as to satisfy their need, which involves opportunity cost.

Scarcity occurs when resources needs to satisfy ends are limited in supply. It is a foundational problem in economics.