Multiple Choice
Scarcity exists because of:
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0. Basic Principles of Economics
Scarcity and Choice
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
A gap between unlimited wants and limited resources creates which of the following?
A
Scarcity
B
Equilibrium
C
Efficiency
D
Surplus
Verified step by step guidance1
Understand the key economic problem: unlimited wants versus limited resources. This is the fundamental issue that economics addresses.
Recognize that when resources are limited but wants are unlimited, it means there is not enough to satisfy all desires fully.
Identify the term that describes this situation. In economics, this condition is called 'scarcity'.
Recall definitions of the other options: 'Equilibrium' refers to a balance in markets, 'Efficiency' relates to optimal resource use, and 'Surplus' means excess supply over demand.
Conclude that the gap between unlimited wants and limited resources creates 'scarcity', as it highlights the need to make choices about resource allocation.
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