Multiple Choice
Every society must develop a system for deciding how it will use its resources so that it can:
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0. Basic Principles of Economics
Scarcity and Choice
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Scarcity exists when there are _______ resources available to satisfy all the competing uses.
A
fixed
B
abundant
C
limited
D
unlimited
Verified step by step guidance1
Understand the concept of scarcity in microeconomics: Scarcity refers to the fundamental economic problem of having limited resources to meet unlimited wants and needs.
Identify the key term that describes the availability of resources in the context of scarcity. Scarcity arises because resources are not abundant or unlimited.
Recognize that 'fixed' resources imply a constant quantity but do not necessarily capture the idea of insufficiency to meet all demands.
Note that 'limited' resources means there is a finite amount of resources available, which is insufficient to satisfy all competing uses, leading to scarcity.
Conclude that scarcity exists when there are \(\textbf{limited}\) resources available to satisfy all the competing uses.
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