Scarcity in economics means that: A) we often do not have sufficient resources to achieve our objectives. B) the wants of people are limited. C) there must be poor people in rich countries. D) shortages exist in nearly all markets.

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Business

Greyson Stewart

15 September, 08:33

Scarcity in economics means that: A) we often do not have sufficient resources to achieve our objectives. B) the wants of people are limited. C) there must be poor people in rich countries. D) shortages exist in nearly all markets.

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Answers (1)

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Abigayle Rogers · Answer 1

The correct answer is letter "A": we often do not have sufficient resources to achieve our objectives.

Explanation:

Scarcity is the basic economic problem by which individuals have unlimited wants but count on limited resources to fulfill them. This situation pushes people to make trade-offs or give up part of the satisfaction of a need so other needs can also be satisfied.

Scarcity pushes individuals and organizations to allocate their resources efficiently so they can maximize their utility.