Final answer:
Anderson's 'world of scarcity' refers to not having enough room for all possible products due to limited resources like shelf space and broadcast channels. Scarcity is a key economic principle dictating that our infinite wants clash with our finite means, which necessitates decision-making on resource allocation.
Step-by-step explanation:
Understanding Scarcity
The concept of 'world of scarcity' that Anderson refers to highlights the reality that there is simply not enough resources or means to satisfy all the wants and needs that people and society have. Among the given options, Anderson's "world of scarcity" is one where there isn't enough shelf space, screens, or channels to carry a wide range of products. This limitation is a reflection of scarcity, which is a fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.
Scarcity forces individuals and societies to make decisions about how to allocate resources efficiently. For instance, even someone with a vast amount of wealth like Bill Gates or Warren Buffett cannot possess an infinite amount of goods or experiences, simply because time is also a finite resource that must be managed.
The wealth of an economy is also constrained by scarcity. Economic activity, represented by the circular flow of goods and services and financial payments, must be balanced with the limited resources available at any given time. As a result, consumers, who influence resource allocation, must make choices regarding which goods and services are produced and consumed.