The existence of relative scarcity
A) refers to the fact that people only desire what they cannot have.
B) is no longer relevant to the U.S. economy.
C) creates the need to choose how to allocate resources.
D) emphasizes the need to conserve free resources.
E) means that every country can produce enough to fully satisfy every citizen's wants.

Question

Quizplus · Accepted Answer

Relative scarcity exists because our wants and needs are unlimited while the resources to satisfy them are limited. This means we must make choices about how to allocate scarce resources, such as deciding how much to produce of certain goods and services or who gets to consume them. The concept of relative scarcity is still relevant to the U.S. economy and every other economy, as it is a fundamental economic concept.

The Existence of Relative Scarcity