Multiple Choice
Why is it important to consider the opportunity cost when making a significant purchase?
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0. Basic Principles of Economics
Scarcity and Choice
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Which of the following is NOT considered scarce according to the economic definition of scarcity?
A
Labor
B
Capital
C
Clean air in an unpolluted rural area
D
Land
Verified step by step guidance1
Step 1: Understand the economic definition of scarcity. Scarcity means that a resource is limited in supply relative to the demand for it, so it requires allocation and choice.
Step 2: Identify the resources listed: Labor, Capital, Clean air in an unpolluted rural area, and Land. Consider whether each is limited or abundant.
Step 3: Analyze Labor, Capital, and Land. These are classic economic resources (factors of production) that are limited and require allocation, so they are scarce.
Step 4: Consider Clean air in an unpolluted rural area. Since it is abundant and freely available without restriction in this context, it is not scarce according to the economic definition.
Step 5: Conclude that the resource NOT considered scarce is Clean air in an unpolluted rural area because it does not require allocation due to its abundance.
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