Question

Which best describes scarcity?

a. the idea that resources, wants, and needs are all unlimited
b. the idea that resources should fulfill unlimited needs and wants
c. the idea that land, labor, and capital are limited
d. the idea that land, labor, and capital are unlimited

Answer 1

Scarcity means that human wants for goods and services exceed the available supply. Resources such as land, labor, and capital are limited, while human wants and needs are virtually unlimited.

Step-by-step explanation:

Scarcity means that human wants for goods and services exceed the available supply. Resources such as land, labor, and capital are limited, which creates scarcity. On the other hand, human wants and needs are virtually unlimited.

For example, there is a limited amount of land available for building houses. However, people's desire for housing is unlimited, as they always want more and better housing.