Question
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.
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
Upstudy AI Solution
Tutor-Verified Answer
Answer
Scarcity means that the demand for goods and services exceeds what can be produced with the available resources.
Solution
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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.
