Multiple Choice
Which of the following helps to avoid wasting resources on goals that cannot be accomplished?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following statements about scarcity is true?
A
Scarcity only affects poor countries and not wealthy ones.
B
Scarcity exists because resources are limited and wants are unlimited.
C
Scarcity is not related to the concept of opportunity cost.
D
Scarcity can be completely eliminated through technological advancement.
Verified step by step guidance1
Step 1: Understand the concept of scarcity in microeconomics. Scarcity refers to the fundamental economic problem that resources are limited while human wants are unlimited.
Step 2: Analyze each statement in the problem to see if it aligns with the definition of scarcity.
Step 3: Evaluate the statement 'Scarcity only affects poor countries and not wealthy ones.' Since scarcity is about limited resources versus unlimited wants, it affects all economies regardless of wealth, so this statement is false.
Step 4: Consider the statement 'Scarcity exists because resources are limited and wants are unlimited.' This directly matches the definition of scarcity and is therefore true.
Step 5: Review the other statements: 'Scarcity is not related to opportunity cost' is false because scarcity necessitates making choices, which leads to opportunity costs; 'Scarcity can be completely eliminated through technological advancement' is false because even with technology, resources remain limited relative to wants.
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