Scarcity is a problem
A)only for poor countries.
B)only for economies under complete government control.
C)faced by all economies.
D)that can be eliminated as the economy grows.
E)not faced by free market economies.

Question

Quizplus · Accepted Answer

Scarcity is a fundamental economic problem that is faced by all economies, regardless of their level of development, political system, or type of market organization. It arises because of the limited availability of resources, which have alternative uses competing for their allocation, and the unlimited wants and needs of consumers and producers. Therefore, choices have to be made, and trade-offs have to be accepted to allocate resources efficiently and maximize their value. Although economic growth and technological progress can increase the supply of goods and services and improve their quality, they cannot eliminate scarcity completely since new needs and wants always emerge.

Scarcity Is a Problem