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
Which of the following is NOT an example of scarcity?
A
A student has only \$20 to spend on lunch for the week.
B
A person can consume unlimited amounts of free air.
C
A factory has a finite number of workers available for production.
D
A farmer has limited land to grow crops.
Verified step by step guidance1
Step 1: Understand the concept of scarcity in microeconomics. Scarcity means that resources are limited while human wants are unlimited, so choices must be made about how to allocate these limited resources.
Step 2: Analyze each option to determine if it represents scarcity. For example, having only \$20 to spend on lunch means limited money, which is a scarce resource.
Step 3: Check if the option involves a resource that is limited or finite. A factory with a finite number of workers and a farmer with limited land both represent scarcity because the resources (labor and land) are limited.
Step 4: Identify the option that does NOT represent scarcity. If a resource can be consumed in unlimited amounts without cost or limitation, it is not scarce. For example, free air is generally considered unlimited and not scarce.
Step 5: Conclude that the correct answer is the option describing a resource that is unlimited and freely available, which means it is NOT an example of scarcity.
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