Scarce Resource and Opportunity Cost Quick Check As a result of limited resources such as land and labor, governments in a market economy must make trade-offs in O the prices of goods and services which products and services are made available to consumers which businesses to dedicate labor to policy decisions and allocation of resources

In a market economy, **scarce resources** like land and labor require governments to make **trade-offs** to efficiently allocate these resources. Among the options provided: 1. **The prices of goods and services**: In a pure market economy, prices are typically determined by supply and demand rather than directly set by the government. 2. **Which products and services are made available to consumers**: While consumer preferences drive availability in a market economy, government intervention can influence this through regulations and standards. 3. **Which businesses to dedicate labor to**: This is less common in a market economy, as businesses independently decide where to allocate labor based on profitability and demand. 4. **Policy decisions and allocation of resources**: This is the most accurate choice. Governments must decide how to allocate limited resources among various competing needs and priorities, making trade-offs in policy decisions to address issues like public goods, infrastructure, education, and healthcare. **Best Answer:** They must make trade-offs in policy decisions and allocation of resources