BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Answer. option D is correct answer because scarcity causes choice and choice implies the decision making relates to usage of limited or rare resources in an economy so if there is no scarcity means there is no choices and no economy.

Detailed explanation-2: -In economics scarcity, or paucity, occurs when there is a disparity between the limited availability of a given resource and the demand for that resource. In theory, human wants can be infinite, but there is a finite amount of material resources, meaning there will always be some degree of scarcity.

Detailed explanation-3: -You are probably used to thinking of natural resources such as titanium, oil, coal, gold, and diamonds as scarce. In fact, they are sometimes called “scarce resources” just to re-emphasize their limited availability.

Detailed explanation-4: -If there is no scarcity of resources, the concept of supply and demand would be meaningless and the prices for all the commodities would be free. Economics would no longer be a useful subject because economics studies the scarcity of resources when the wants of an individual are unlimited.

Detailed explanation-5: -Like the more general society-wide condition of scarcity, a given resource falls into the scarce category because it has a limited availability in combination with greater (potentially unlimited) productive uses. Economic goods are not in adequate quantity therefore resources are scares.