Question

The problem of scarcity suppose that the hypothetical country of paddyland suffers from chronic scarcity of its staple grain, rice. true or false: paddyland is restrained by the resources it has to satisfy the various wants of its residents.

Answer 1

The statement given for the case in question is True.

Since Paddyland only has limited resources, it cannot satisfy all the wants of its residents. The problem of scarcity referred here is related to due to limited resources, an entity has to decide how to allocate its resources properly, which of course means that in every economic decision that an entity makes, there is an opportunity cost.