Question

An implication of scarcity is that:

1. people will never be happy.
2. making trade-offs becomes unnecessary as wealth increases.
3. some people will always be poor.
4. people must make trade-offs.

Answer 1

4. people must make trade-offs.

Step-by-step explanation:

Scarcity is the shortage of supply with respect to demand. It arises due to unlimited wants contrasted with limited resources - having alternative uses.

Scarcity : Demand > Supply

This leads to trade off (sacrifise) of something to attain anything, since the limited resources are short of unlimited wants & have alternative uses.

Eg : Having fixed money income (analogous to resources) & many commodities in consumption basket (analogous to wants); if one commodity is gained - it would be at the cost of sacrifising (trade off) some other commodity.