The term "scarcity" in economics can refer to the fact that:

a. economic wants are limited and resources are abused

b. even in the richest country some people go hungry

c. no country can produce enough products to satisfy everybody's economic wants

d. it is impossible to produce too much of any particular good or service in a market economy

Question

Trystan Morrow

Business

16 July, 06:53

The term "scarcity" in economics can refer to the fact that:

a. economic wants are limited and resources are abused

b. even in the richest country some people go hungry

c. no country can produce enough products to satisfy everybody's economic wants

d. it is impossible to produce too much of any particular good or service in a market economy

+3

Answers (1)

Know the Answer?

Clinton Lam · Answer 1

The correct answer is letter "C": no country can produce enough products to satisfy everybody's economic wants.

Explanation:

Scarcity is the basic economic problem by which individuals have unlimited wants but have limited resources to fulfill them. Scarcity drives individuals to allocate their resources efficiently so most of their needs can be satisfied.

Because of scarcity, people are forced to make trade-offs implying part of their needs must be sacrificed so other needs can be covered. Thus, we could say that there is no country able to produce enough products to satisfy everyone's wants.