Question
upstudy study bank question image url

When economists say goods are scarce, they mean: a. consumers are unwilling to buy goods unless they have very low prices. b. goods are generally freely available from nature in most countries. c. consumers are too poor to afford the goods and services available. d. the desire for goods and services exceeds our ability to produce them with the limited resources available.

Ask by Estrada Tucker. in the United States
Jan 24,2025

Real Tutor Solution

Tutor-Verified Answer

Answer

Scarcity means that the demand for goods and services exceeds what can be produced with the available resources.

Solution

The correct answer is: **d. the desire for goods and services exceeds our ability to produce them with the limited resources available.** ### Explanation: - **Scarcity** in economics refers to the fundamental problem that arises because resources are limited while human wants are unlimited. This means that there are not enough resources to produce enough goods and services to satisfy all human desires. - The other options do not accurately reflect the concept of scarcity: - **a** suggests a price-related issue rather than a resource limitation. - **b** implies that goods are abundant, which contradicts the definition of scarcity. - **c** focuses on consumer wealth rather than the overall production capacity relative to demand. Thus, option **d** captures the essence of scarcity in economics.

Reviewed and approved by the UpStudy tutoring team

error msg
Explain
Simplify this solution

Mind Expander

The correct answer is d. When economists describe goods as scarce, they are highlighting that there are limited resources available to produce goods and services, while the desire for them is virtually endless. This fundamental concept of scarcity helps explain the choices that individuals and societies must make regarding resource allocation. Understanding scarcity is vital in everyday life. For instance, when budgeting your monthly expenses, you're faced with the reality that your income is limited while your wants—like dining out or buying the latest gadget—are practically limitless. This is where prioritizing and making sacrifices come into play, allowing you to make the most informed choices based on your unique situation.

Related Questions

Latest Economics Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy