Question

What is meant by the statement that every economic system faces the problem of scarcity?

a) There are additional benefits of productive resources greater than their addition costs.
b) There are never enough productive resources available to satisfy all human wants.
c) There are times when some productive resources can only be purchased at higher prices.
d) There are always productive resources available to satisfy all human wants.

Answer 1

Every economic system faces the problem of scarcity because there are limited resources that cannot fulfill all human wants, necessitating choices on resource allocation.

Step-by-step explanation:

What is meant by the statement that every economic system faces the problem of scarcity is that there are never enough productive resources available to satisfy all human wants. Scarcity is a fundamental economic problem where society's resources are limited, and cannot meet the unlimited needs and wants of individuals. For instance, even individuals like Bill Gates and Warren Buffett cannot have unlimited resources. Scarcity forces every society to make decisions on how to allocate resources efficiently, as represented by the production possibilities curve, which shows the trade-offs and choices society must make.