The presence of scarcity means that no choices come without
A) shortages.
B) trade-offs.
C) regret.
D) incentives.
E) consumption.

Question

Quizplus · Accepted Answer

Scarcity implies limited resources and unlimited wants, which means that every decision involves a trade-off. When making a choice, an individual foregoes the opportunity to pursue other alternatives, and this is the fundamental concept of trade-offs. Therefore, the best choice that acknowledges the presence of scarcity is to opt for an alternative that provides the highest marginal benefit relative to its marginal cost.

The Presence of Scarcity Means That No Choices Come Without