Multiple Choice
Which of the following is NOT considered scarce according to the economic definition of scarcity?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Why do all societies face the problem of scarcity?
A
Because resources are distributed equally among all individuals
B
Because governments restrict access to all goods and services
C
Because technology eliminates all resource constraints
D
Because resources are limited while human wants are unlimited
Verified step by step guidance1
Understand the concept of scarcity in microeconomics: Scarcity arises because resources available to produce goods and services are limited, while human wants and needs are virtually unlimited.
Recognize that scarcity is a fundamental economic problem faced by all societies, regardless of how resources are distributed or how technology advances.
Analyze why the other options are incorrect: Equal distribution of resources does not eliminate scarcity; government restrictions do not create scarcity but may affect access; technology can alleviate but not completely remove resource constraints.
Conclude that scarcity exists because the supply of resources (such as land, labor, and capital) is finite, but human desires for goods and services continue to grow without bound.
Summarize that the correct reason all societies face scarcity is due to the limited nature of resources in contrast to unlimited human wants.
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