Scarcity

question 17

Multiple Choice

Scarcity

• A)stems from the incompatibility between limited resources and unlimited wants.
• B)can be overcome by discovering new resources.
• C)can be eliminated by rationing products.
• D)is a bigger problem in market economies than in socialist economies.

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Definitions:

Clothing

Items worn on the body, typically made from fabrics or textiles, used for protection, adornment, or social status.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity, facilitating beneficial trade.

Autarky

An economic system where a region or country is self-sufficient and has no trade with the outside world.

Specialization

The situation in which each person specializes in the task that he or she is good at performing.