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In which of the following situations is a good not scarce?

(a) A free-market economy with abundant resources
(b) A centrally planned economy with limited resources
(c) A barter system with no currency
(d) A communal society with shared resources

User Itsh
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Final answer:

In all four scenarios given, goods are still considered scarce because scarcity is linked to the balance between limited resources and unlimited human wants, regardless of the type of economic system.

Step-by-step explanation:

In the context of economic systems and resource allocation, scarcity is a fundamental concept which means that available resources are not sufficient to satisfy all human wants and needs. Even though some situations may seem to escape scarcity, such as a communal society with shared resources, this does not mean goods are not scarce. Scarcity is less about the type of economy and more about the balance between resources and unlimited wants.

For instance, in a free-market economy with abundant resources, goods are still considered scarce because the wants may exceed what can be produced with those resources. Similarly, in a centrally planned economy with limited resources, scarcity is evident because the central authority has to make decisions about how to allocate the opportunity cost associated with each transaction. Lastly, in a communal society where resources are shared, goods can still be scarce if the community's demands outstrip the available resources.

User Selim Ok
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