Final answer:
The correct term for 'extreme greed' and the 'desire to gain and hoard money' is 'avarice'. It is related to the concept of scarcity in economics, where resources are limited.
Step-by-step explanation:
The term that best describes 'extreme greed; desire for wealth; inordinate desire to gain and hoard money' among the choices provided is 'avarice'. 'Avarice' specifically refers to an insatiable greed for riches and the desire to hoard wealth. This concept can be linked to deeper socio-economic issues, as scarcity in economics dictates that resources are limited and individuals, regardless of their wealth status, cannot satisfy all their desires. This forms a backdrop where avarice can be considered both a personal vice and a reflection of broader economic principles.