Multiple Choice
Scarcity exists when there are _______ resources available to satisfy all the competing uses.
106
views
0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following best describes a limited resource in the context of economics?
A
A resource that increases in supply as demand increases
B
A resource that is available in finite quantities and cannot satisfy all wants
C
A resource that is produced only by government agencies
D
A resource that is freely available to everyone without restriction
Verified step by step guidance1
Understand the concept of scarcity in economics, which refers to the fundamental problem that resources are limited while human wants are unlimited.
Recognize that a limited resource is one that exists in finite quantities and cannot satisfy all the desires or demands of people.
Evaluate each option by comparing it to the definition of scarcity: a resource that increases in supply as demand increases does not fit scarcity because it is not limited.
Identify that a resource produced only by government agencies is not necessarily limited; the limitation depends on quantity, not the producer.
Conclude that the best description of a limited resource is one that is available in finite quantities and cannot satisfy all wants, reflecting the core economic problem of scarcity.
Related Videos
Related Practice
