Final answer:
Scarcity arises because resources are limited and cannot satisfy the unlimited human wants for goods and services. The correct answer to the question is A) Resources are Limited.
Step-by-step explanation:
The phenomenon of scarcity stems from the fact that resources are limited. To answer the question, scarcity is the condition where human wants for goods and services exceed the available supply; this happens because resources are limited. Given the options provided, the correct answer is A) Resources are Limited. Although demand may seem infinite, scarcity arises because there is a finite amount of resources such as land, factories, oil, and labor. Our desires for more and better goods and services are constrained by these limited resources.