If 75% of India's rural population lives in poverty, it most likely means that:

• A. poverty is unrelated to the choices people make regarding resource allocation
• B. resources are limited and not distributed equally among the population
• C. there is no scarcity of resources in rural India
• D. all individuals in rural India have equal access to goods and services

Answer: (B)

Verified step by step guidance

1. Understand the concept of scarcity in microeconomics: Scarcity means that resources are limited and cannot satisfy all human wants and needs simultaneously.
2. Recognize that poverty often results from limited resources and unequal distribution, which affects individuals' ability to access goods and services.
3. Analyze the statement that 75% of India's rural population lives in poverty as an indication of scarcity and unequal resource allocation rather than a lack of choices or equal access.
4. Eliminate options that contradict the concept of scarcity, such as 'there is no scarcity of resources' and 'all individuals have equal access to goods and services,' since these do not align with the high poverty rate.
5. Conclude that the most reasonable interpretation is that resources are limited and not distributed equally among the population, which explains the high poverty level.