Question

When economists speak of scarcity, they are referring to the: a. condition in which society is not employing all its resources in an efficient way. b. condition in which people's wants outstrip the limited resources available to satisfy those wants. c. economic condition that exists in only very poor countries of the world. d. condition in which society produces too many frivolous goods and not enough socially desirable goods.

Answer 1

Answer:b. condition in which people's wants outstrip the limited resources available to satisfy those wants

Explanation:

Economist believes that scarcity doesn't exist because people are poor or rich but it because we always want more than what we have as a result the amount of resources available becomes insufficient to fulfill all our desires .

Those who already have more still yearn for something more than what they have , the one who has a million wishes they could have five millions and we keep taking and taking in more and more goods and services .

Those who are poor desire to have more of the goods and services than the little that they possess.

As a result of this action we put more demand on the available resources and they become insufficient to fulfill all our wants.