True or False: Suppose that the hypothetical country of Kernaland has a chronic scarcity of corn, its staple grain. This implies that the residents of Kernaland need to ration corn.

The statement is: True.

Explanation:

Scarcity is the basic economic problem by which individuals have unlimited needs counting only with finite resources to fulfill them. In front of this scenario, individuals must make trade-offs meaning the satisfaction of some needs must be given up in part so other needs can be satisfied simultaneously.

If corn is scarce in Kernaland, the first step its inhabitants must take is to ration corn before its exploitation reduces the corn crops even more.