To an Economist, Scarcity Means That

question 64

Multiple Choice

To an economist, scarcity means that:

• A)it is very time-consuming to find a good.
• B)at a zero price, the available quantity of a good is insufficient to meet people's wants.
• C)a good is unavailable even at very high prices.
• D)at the current market price, the amount available is less than the amount that people want and are willing to pay for.
• E)resources are unlimited but people's desires are limited.

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Definitions:

Vivid

Producing powerful feelings or strong, clear images in the mind, often used to describe memories, descriptions, or dreams.

Schema

A cognitive framework or concept that helps organize and interpret information in the brain.

Availability Heuristic

A cognitive shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Amnesia

A loss or disturbance of memory, often due to brain injury, disease, or psychological trauma, impairing the ability to recall past experiences.