The Concept of Scarcity Refers to

question 137

Multiple Choice

The concept of scarcity refers to

• A)a situation in which an item is very expensive.
• B)a situation in which an item is available only in very small quantities.
• C)a situation in which a resource is nonrenewable.
• D)a situation in which people face a shortage in a particular market.
• E)a situation in which the available resources are not enough to satisfy the wants of the people.

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Definitions:

Market

Any structure that allows buyers and sellers to exchange any type of goods, services, and information.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive in the market.

Equilibrium

The state in which market supply and demand balance each other, and as a result, prices become stable.

Market

A place or system where parties engage in exchange, buying and selling goods and services.