Which of the following statements is true regarding scarcity?
A) An economy experiences scarcity only when the incomes of its citizens decline.
B) Scarcity could be overcome if people would make all choices in the social interest.
C) Poor people experience scarcity more often than do rich people.
D) Scarcity affects poorer countries only.
E) All citizens in a wealthy economy experience scarcity.

Question

Quizplus · Accepted Answer

Scarcity is a fundamental concept in economics that exists because resources are limited while wants and needs are unlimited. Therefore, all citizens in any economy experience some degree of scarcity, regardless of the level of wealth or income inequality. Choices A, B, C, and D are all incorrect as they suggest that scarcity is limited to certain groups or can be overcome by specific actions.

Which of the Following Statements Is True Regarding Scarcity