Multiple Choice
As a consequence of the problem of scarcity, which of the following must individuals and societies do?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Overpopulation can lead to limited:
A
demand for goods and services
B
availability of resources
C
opportunity cost
D
production possibilities
Verified step by step guidance1
Step 1: Understand the concept of overpopulation in microeconomics, which refers to a situation where the number of people exceeds the capacity of the environment or economy to support them adequately.
Step 2: Recognize that overpopulation primarily affects the availability of resources because more people require more natural resources such as land, water, and raw materials, which are limited in supply.
Step 3: Recall that limited resources mean that the economy cannot produce unlimited goods and services, leading to scarcity, which is a fundamental concept in microeconomics.
Step 4: Analyze why overpopulation does not directly limit demand for goods and services; in fact, demand might increase with more people, but the constraint is on the resources needed to meet that demand.
Step 5: Conclude that overpopulation leads to limited availability of resources, which in turn affects production possibilities and opportunity costs, but the primary limitation is on resources themselves.
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