Which of these statements demonstrate the economic concept of scarcity? Check all that apply.All useful resources are limited in their supply.Everyone is able to meet all their wants and needsThe wants and needs of people are unlimited.Resources are scarce, which explains why we are willing to pay for them.A large economy is able to eliminate the effects of scarcity.Because of scarcity, individuals must make choices.
Answer
A
All useful resources are limited in their supply.
B
Everyone is able to meet all their wants and needs
C
The wants and needs of people are unlimited.
D
Resources are scarce, which explains why we are willing to pay for them.
E
A large economy is able to eliminate the effects of scarcity.
F
Because of scarcity, individuals must make choices.
Explanation
Scarcity exists because useful resources are limited while people’s wants and needs are unlimited. Limited resources have value, which helps explain why people are willing to pay for them. Since resources cannot satisfy every want, individuals must make choices about how to use them. A large economy cannot eliminate scarcity, and people cannot meet all their wants and needs.
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