Final answer:
The correct answer to the question is B) Scarce, as economic resources are limited and cannot satisfy all human wants, which leads to the universal issue of scarcity.
Step-by-step explanation:
A basic concept in economics is the idea that all resources are scarce. This means that human wants for goods and services exceed the available supply. Resources such as land, factories, oil, and even labor are all limited. On the other hand, human demands are virtually unlimited, which implies that no matter how much supply there is, we naturally want more. This scarcity of resources necessitates that consumers decide how resources are allocated and what is produced, leading to the wealth generation through the circular flow of economic activity. As a result, choices have to be made regarding which goods and services are to be produced and consumed.
Natural resources come from the earth and can be renewable like trees and solar energy, or nonrenewable like fossil fuels and precious metals. However, if not harvested or utilized sustainably, even renewable resources can become finite. Thus, the correct answer to the student's question is that all resources are B) Scarce.