ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Because of scarcity people have to make choices.
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Rich people do not experience scarcity.
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Scarcity only exists in poor countries.
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Gold is not considered scarce.
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Detailed explanation-1: -The correct answer is d. The problem will exist as long as resources are available in limited amounts.
Detailed explanation-2: -Since resources are limited, people must make choices related to goods and services. Scarcity is the condition of not being able to have all of the goods and services one wants because wants exceed what can be made from all available resources at any given time.
Detailed explanation-3: -Where there is scarcity, choices must be made! Scarcity refers to the finite nature and availability of resources while choice refers to people’s decisions about sharing and using those resources.
Detailed explanation-4: -Scarcity forces all of us to make choices by making us decide which options are most important to us. The principle of scarcity states that there are limited goods and services for unlimited wants. Thus, people need to make choices in order to satisfy the wants that are most important to them.