Multiple Choice
Which of the following is a risk associated with complete specialization in the production of a single good?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following is NOT considered scarce according to the economic definition of scarcity?
A
Fresh water in a desert
B
Labor in a growing economy
C
Land in a crowded city
D
Clean air in an uninhabited wilderness
Verified step by step guidance1
Step 1: Understand the economic definition of scarcity. Scarcity means that a resource is limited in supply relative to the demand for it, so it is not freely available in sufficient quantities to satisfy all wants.
Step 2: Analyze each option to determine if it is scarce. For example, fresh water in a desert is scarce because it is limited and highly demanded.
Step 3: Consider labor in a growing economy. Labor can be scarce if there are not enough workers to meet the demand for jobs, so it is typically considered scarce.
Step 4: Evaluate land in a crowded city. Land is scarce in this context because there is limited space and high demand for it.
Step 5: Examine clean air in an uninhabited wilderness. Since it is abundant and freely available without competition, it is not scarce according to the economic definition.
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