Given that resources are scarce, which statement best describes this reality?
A) Opportunity costs are zero.
B) People must make choices.
C) All human wants and desires can be satisfied.
D) Resource prices are fixed.

Question

Given that resources are scarce, which statement best describes this reality?  
A) Opportunity costs are zero. 
B) People must make choices. 
C) All human wants and desires can be satisfied. 
D) Resource prices are fixed.

Quizplus · Accepted Answer

The reality of scarce resources means that people must make choices due to limitation in quantity. They must decide what to produce, how to produce, and for whom to produce, based on the tradeoffs between different alternatives. Opportunity costs arise from making choices, as one has to give up the potential benefits of the next best alternative. Therefore, option B is the best choice. Option A is false because opportunity costs are always a part of decision-making in the presence of scarce resources. Option C is false because even if all wants and needs of society are satisfied, new ones emerge due to changing times and technological advancements. Option D is false because resource prices depend on demand and supply, which are constantly changing, making them not fixed.

Given That Resources Are Scarce, Which Statement Best Describes This