Which of the following statements can be potentially true about any economy?

• A. All individuals in the economy have unlimited access to goods and services.
• B. Resources are scarce and choices must be made about their allocation.
• C. Markets always guarantee perfect equality among participants.
• D. There are no opportunity costs when making decisions.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of scarcity in economics. Scarcity means that resources are limited while human wants are unlimited, which forces individuals and societies to make choices about how to allocate these resources efficiently.
2. Step 2: Analyze the statement 'All individuals in the economy have unlimited access to goods and services.' This contradicts the principle of scarcity because if resources were unlimited, there would be no need to make choices or allocate resources.
3. Step 3: Consider the statement 'Markets always guarantee perfect equality among participants.' In reality, markets can lead to unequal outcomes due to differences in resources, information, and bargaining power, so this statement is generally false.
4. Step 4: Evaluate the statement 'There are no opportunity costs when making decisions.' Opportunity cost is a fundamental concept in economics, representing the value of the next best alternative foregone when a choice is made. Therefore, this statement is false.
5. Step 5: Conclude that the only potentially true statement about any economy is that 'Resources are scarce and choices must be made about their allocation,' as this reflects the core economic problem that applies universally.