ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Scarcity
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Allocation
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Productivity
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Efficiency
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Detailed explanation-1: -Efficiency: The use of the smallest amount of resources to produce the greatest amount of output.
Detailed explanation-2: -A resource is scarce when its demand by various economic entities exceeds the available amount when the resource price is zero. Moreover, the concept of scarcity is vital in economics because it forces individuals to make choices as they cannot satisfy all their desires in the market.
Detailed explanation-3: -Demand-induced scarcity reflecting rising demand. Supply-induced scarcity caused by diminished supply. Structural scarcity attributable to mismanagement or inequality.
Detailed explanation-4: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.