Multiple Choice
The potential benefit given up when selecting one alternative over another is a(n) ______ cost.
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0. Basic Principles of Economics
Scarcity and Choice
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Which term in economics best describes the limited nature of society's resources?
A
Abundance
B
Equity
C
Efficiency
D
Scarcity
Verified step by step guidance1
Understand the concept being asked: The problem is about identifying the economic term that describes the limited availability of resources in society.
Recall the definitions of the given options: 'Abundance' means having plenty of resources, 'Equity' refers to fairness in distribution, and 'Efficiency' relates to optimal use of resources.
Recognize that the term describing limited resources is 'Scarcity', which means that resources are finite and insufficient to satisfy all human wants.
Connect scarcity to the fundamental economic problem: because resources are scarce, choices must be made about how to allocate them effectively.
Conclude that the correct term for the limited nature of society's resources is 'Scarcity'.
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