Question

Which answer choice correctly describes the concept of scarcity?

Answer 1

Answer:

The correct answer is: d) Limited resources cannot satisfy unlimited wants

Explanation:

Scarcity is considered the main problem that economic science must deal with. This concept refers to the conflict that arises in a world where human's wants are infinite, but the resources to satisfy those needs (typically labeled as the three factors of production: land, labor and capital), as well as natural resources are limited. Thus, the economic science aims to study the choices that individuals and systems make to allocate (scarce) resources in an efficient way.