Which of the Following Statements Best Describes the Problem of Scarcity

question 188

Multiple Choice

Which of the following statements best describes the problem of scarcity?

• A) Scarcity means that shortages occur at the existing market price.
• B) It is impossible to satisfy unlimited human wants with limited resources.
• C) When there is scarcity, individuals do not face trade-offs.
• D) As a result of scarcity, individuals do not have the ability to make choices.

---

Definitions:

Pleasant Surroundings

Environments or settings that are enjoyable and contribute to a positive experience.

Market Economy

An economic system where supply and demand determine the prices of goods and services, with minimal government intervention.

Provision

The act of supplying or making available goods, services, or resources to meet a need or demand.

Labor Union

An organization formed by workers in the same trade or industry to negotiate collectively with their employers over wages, hours, benefits, and working conditions.