Scarcity exists because of:
A)the allocation of goods by prices.
B)specialization and division of labor.
C)the market mechanism.
D)unlimited wants and limited resources.

Question

Scarcity exists because of:
A)​the allocation of goods by prices.
B)​specialization and division of labor.
C)​the market mechanism.
D)​unlimited wants and limited resources.

Quizplus · Accepted Answer

Scarcity exists because human wants and needs are essentially unlimited, but the resources needed to satisfy those wants and needs are limited. This is why we have to make choices about how to allocate those resources in the most efficient way possible. The other choices (A, B, and C) are related concepts that are part of the overall market system, but they do not fully explain why scarcity exists in the first place.

Scarcity Exists Because Of