The basic characteristic of an economic resource is that it
A) is made by machine.
B) is free.
C) is relatively scarce.
D) consists of buildings, equipment, and inventories.
E) comes from the earth.

Question

Quizplus · Accepted Answer

Economic resources are scarce or limited in supply relative to the demand for them. This scarcity is what gives resources economic value and motivates people to allocate them efficiently. Choices A, B, D, and E are incorrect because economic resources can come in various forms and are not limited to being made by machines, free, consisting of buildings/equipment/inventories, or coming from the earth.

The Basic Characteristic of an Economic Resource Is That It