Which of the following best describes scarcity? A . Prices of goods are very high. B . Wants cannot be fulfilled and thus all goods must be rationed. C . Markets cannot properly allocate resources. D . Unlimited wants exceed the limited resources available. Scarcity is central to the study of economics because it implies that

Question

Which of the following best describes scarcity? A .  ﻿Prices of goods are very high. B .  ﻿Wants cannot be fulfilled and thus all goods must be rationed. C .  ﻿Markets cannot properly allocate resources. D .  ﻿Unlimited wants exceed the limited resources available. Scarcity is central to the study of economics because it implies that

Anu Bhardwaj · Accepted Answer

D. Unlimited wants exceed the limited resources available.

Explanation:

A. Prices of goods are very high – this is sometimes a result of scarcity, but not the definition of scarcity.
B. Wants cannot be fulfilled, and thus all goods must be rationed – too extreme, not all goods must be rationed.
C. Markets cannot properly allocate resources – markets do allocate resources, but scarcity is the reason choices must be made.
D. Unlimited wants exceed the limited resources available – this is the standard definition of scarcity in economics.

Economics

Economics

Anu Bhardwaj

Answer

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