Question

Because the world is characterized by scarcity, people must allocate the limited _________ at their disposal among many competing uses.

Answer 1

Answer:

The correct response is that people must allocate resources.

Explanation:

People have to delegate limited resources between many competing uses because wages do not often meet the costs of living in the world today. In some countries, the average wages are very low and do provide a living wage.  One principle of economics is that scarcity forces people to make choices regarding their resources. Such choices carry a cost in terms of missed opportunities. Economists call this opportunity cost when we have to forgo and sacrifice because of our choices regarding our resources.