Multiple Choice
Which of the following are examples of limited resources for consumers?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which scenario best explains the concept of scarcity?
A
A store offers unlimited free samples to every customer.
B
A farmer harvests more crops than can be sold in the market.
C
A student has only \$20 to spend and must choose between buying a textbook or going to a concert.
D
A country produces all the goods its citizens desire without any limitations.
Verified step by step guidance1
Understand the concept of scarcity: Scarcity in economics means that resources are limited while human wants are unlimited, so choices must be made about how to allocate these limited resources.
Analyze each scenario to see if it involves limited resources and the need to make choices:
Scenario 1: A store offers unlimited free samples to every customer. This implies no limitation on samples, so scarcity is not illustrated here.
Scenario 2: A farmer harvests more crops than can be sold in the market. This suggests excess supply, not scarcity, since resources exceed demand.
Scenario 3: A student has only \$20 to spend and must choose between buying a textbook or going to a concert. This clearly shows scarcity because the student has limited money and must make a choice, illustrating the trade-offs caused by scarcity.
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