ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What two requirements must an item meet to be considered scarce?
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limited in quantity and desirable
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expensive and rare
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a natural resource and plentiful
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a man made resource and cheap
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Explanation:
Detailed explanation-1: -1. The must be a demand for the item. 2. The amount of it must be limited-supply.
Detailed explanation-2: -The two causes of scarcity include mismanagement of resources and high demand for natural resources.
Detailed explanation-3: -Most goods (and services) are economic goods, i.e. they are scarce. Scarce goods are those for which the demand would be greater than the supply if their price were zero. Because of this shortage, economic goods have a positive price in the market. That is, consumers have to pay to get them.
Detailed explanation-4: -There are two types of scarcity, relative and absolute scarcity.
There is 1 question to complete.