Multiple Choice
Which of the following factors has the largest impact on opportunity cost?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following best describes scarcity?
A
The presence of surplus goods in the market.
B
The situation where resources are distributed equally among all individuals.
C
The availability of resources to satisfy all human wants.
D
The condition in which unlimited wants exceed limited resources.
Verified step by step guidance1
Understand the concept of scarcity in microeconomics: Scarcity refers to the fundamental economic problem that arises because resources are limited while human wants are unlimited.
Recognize that scarcity is not about surplus goods or equal distribution, but about the imbalance between limited resources and unlimited desires.
Identify that scarcity means there are not enough resources to satisfy all human wants, which forces individuals and societies to make choices about how to allocate resources efficiently.
Compare each option given in the problem to the definition of scarcity to determine which one correctly captures this imbalance.
Conclude that the best description of scarcity is 'The condition in which unlimited wants exceed limited resources,' as it directly reflects the core economic problem.
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