Why does the problem of scarcity exist?
A) because resources are limited relative to wants
B) because governments fail to intervene in the market place
C) because resources are unlimited relative to wants
D) because the world has many poor people

Question

Quizplus · Accepted Answer

Scarcity exists because resources, whether natural or human-made, are limited relative to human wants and needs. This means that there are not enough resources to satisfy all human desires and needs. Governments can intervene in the market place to help allocate resources, but scarcity itself is a fundamental economic concept that exists regardless of government intervention or the presence of poverty.

Why Does the Problem of Scarcity Exist