In the context of resource allocation, what does the term 'scarcity' imply?
Practice Questions
1 question
Q1
In the context of resource allocation, what does the term 'scarcity' imply?
Resources are abundant and easily accessible.
There is a limited supply of resources relative to demand.
Resources can be allocated without any constraints.
All resources are equally valuable in every context.
Scarcity implies that there is a limited supply of resources relative to demand, making option 1 the correct interpretation.
Questions & Step-by-step Solutions
1 item
Q
Q: In the context of resource allocation, what does the term 'scarcity' imply?
Solution: Scarcity implies that there is a limited supply of resources relative to demand, making option 1 the correct interpretation.
Steps: 4
Step 1: Understand what resources are. Resources can be anything that people use to satisfy their needs and wants, like money, time, food, and materials.
Step 2: Recognize that scarcity means there is not enough of these resources to meet everyone's needs and wants.
Step 3: Realize that when demand for resources is higher than the available supply, it creates a situation of scarcity.
Step 4: Conclude that scarcity forces people to make choices about how to allocate their limited resources.
