ECONOMICS
PRODUCTIVE RESOURCES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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people and their tools are inefficient.
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natural disasters create frequent shortages.
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governments create scarcity to keep people wanting more.
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while peoples’ wants are unlimited, resources are limited.
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Detailed explanation-1: -Scarcity is caused by unlimited wants and limited resources. Scarcity is fundamentally defined by a demand that far outweighs supply. Scarcity realizes to different extents. Essentially, if something has a cost, it’s scarce; from apples to steel and gold.
Detailed explanation-2: -Scarcity exists because we have limited resources and unlimited wants. No society has ever had enough resources to produce all the goods and services its members wanted. Because of scarcity, all decisions involve costs.
Detailed explanation-3: -Resources are scarce because we live in a world in which humans’ wants are infinite but the land, labor, and capital required to satisfy those wants are limited. This conflict between society’s unlimited wants and our limited resources means choices must be made when deciding how to allocate scarce resources.
Detailed explanation-4: -’Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources. The basic concern of an economy is to allocate the scarce resources to the best possible use in the face of unlimited wants. Thus, the problem of scarcity forces an economy to make a choice among various alternatives.
Detailed explanation-5: -d. A scarcity occurs when there are limited quantities to meet unlimited wants, and a shortage occurs when a good or service is unavailable.