Multiple Choice
Based on the concept of scarcity, which of the following objects is likely to have the most value?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following statements best demonstrates the economic concept of scarcity?
A
Resources are abundant and can satisfy all human wants.
B
Consumers must decide how to allocate limited income among competing needs.
C
Prices remain unchanged regardless of supply and demand.
D
A store offers unlimited free goods to everyone.
Verified step by step guidance1
Understand the concept of scarcity in economics: Scarcity means that resources are limited while human wants are unlimited, so choices must be made about how to allocate these limited resources.
Analyze each statement to see if it reflects the idea of limited resources and the need to make choices.
The first statement says resources are abundant and can satisfy all human wants, which contradicts scarcity because scarcity implies resources are limited.
The second statement says consumers must decide how to allocate limited income among competing needs, which directly reflects scarcity since it highlights limited resources (income) and the need to make choices.
The third and fourth statements describe situations where prices do not change or goods are unlimited, both of which do not align with the concept of scarcity because scarcity involves limited resources and trade-offs.
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