Multiple Choice
An opportunity cost can make decision making difficult because _____.
34
views
0. Basic Principles of Economics
Scarcity and Choice
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Scarcity exists because of:
A
limited resources and unlimited wants
B
efficient allocation of resources
C
unlimited resources and limited wants
D
government intervention in markets
Verified step by step guidance1
Understand the concept of scarcity in microeconomics: Scarcity arises because resources are limited while human wants are unlimited.
Analyze each option by comparing it to the definition of scarcity:
Option 1: 'limited resources and unlimited wants' aligns with the fundamental cause of scarcity.
Option 2: 'efficient allocation of resources' is a way to manage scarcity, not the cause of it.
Option 3 and 4: 'unlimited resources and limited wants' and 'government intervention in markets' do not describe scarcity correctly.
2:39mWatch next
Master Defining Economic Terms:Scarcity, Trade-offs, and Opportunity Costs with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Scarcity and Choice practice set
Problem sets built by lead tutorsExpert video explanations