Multiple Choice
Which of the following best illustrates the concept of scarcity?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following is an example of scarcity?
A
A person can consume as much water as they want without any restrictions.
B
A student has only \$20 to spend on lunch for the week.
C
A store offers unlimited free samples to every customer.
D
A farmer harvests crops with no limit on land or resources.
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 resources.
Analyze each option to see if it involves a limitation on resources or money, which would indicate scarcity.
Option 1: "A person can consume as much water as they want without any restrictions" implies no limitation, so no scarcity here.
Option 2: "A student has only \$20 to spend on lunch for the week" clearly shows a limited resource (money), which means the student must make choices, illustrating scarcity.
Options 3 and 4 describe situations with unlimited resources or no restrictions, so they do not represent scarcity.
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