Scarcity Exists Because Of

question 6

Multiple Choice

Scarcity exists because of:

• A) the market mechanism.
• B) specialization and division of labor.
• C) the allocation of goods by prices
• D) unlimited wants and limited resources.

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Definitions:

Goods

Tangible products or commodities that are manufactured or produced for sale or exchange.

Resources

A broad term that encompasses all the materials, assets, and inputs used by individuals or organizations to produce goods and services.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs, attempting to determine how these groups should organize and coordinate efforts to achieve maximum output.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.