ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Because there were unused parking spots still available, the parking was not scarce
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The decision to park near MCV involved a tradeoff
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Mr. White believed that paying for the parking spot was in his own best interest
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The opportunity cost of this decision was whatever Mr. White would have done with the $2, had he not parked there
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Detailed explanation-1: -Answer and Explanation: The correct answer is b. Resources are scarce when compared to the demand for them. Scarcity is an economic problem, and it is defined as the gap between the unlimited wants of individuals and limited resources in the economy.
Detailed explanation-2: -Opportunity cost is a term in economics used to describe benefits that are lost when choosing one option over another. In short, it’s a value of the road not taken. Opportunity costs are easy to overlook, but understanding missed opportunities is crucial to better decision making in business.
Detailed explanation-3: -The correct answer is d. The problem will exist as long as resources are available in limited amounts.
Detailed explanation-4: -Which of the following statements describes an economy confronting scarcity? Less of good Y is produced as resources move from producing good Y to producing good X.