Question

Which of the following describes the reason why scarcity​ exists? A. Wants exceed the resources available to satisfy them. B. Governments make bad economic decisions. C. The gap between the rich and the poor is too wide. D. There is too much unemployment.

Answer 1

Wants exceed the resources available to satisfy them describes the reason why scarcity​ exists

Option A

Explanation:

Scarcity means that the services to go around are not enough. This is because of the fundamental economic problem: people have limitless needs and desires, but only very little opportunities to fulfil them.

The universe has no limitless repositories of what we want and what we need. All is small, and therefore there's scarcity.

The "basic economic problem" is called scarcity, which means that it always persists. There is a lack of biodiversity because of the consequences of drought, waterfalls, floods, rodents, fires and more. A real shortage of non-renewable resources can also exist.