Question

understanding scarcity
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 needs
□ the 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.

Explanation:

To determine which statements demonstrate the economic concept of scarcity, we analyze each:

• "All useful resources are limited in their supply": Scarcity arises from limited resources. Correct.
• "Everyone is able to meet all their wants and needs": Scarcity means wants/needs exceed resources, so this is false.
• "The wants and needs of people are unlimited": A core part of scarcity (unlimited wants vs. limited resources). Correct.
• "Resources are scarce, which explains why we are willing to pay for them": Scarcity creates value (hence willingness to pay). Correct.
• "A large economy is able to eliminate the effects of scarcity": Scarcity is universal (even in large economies). False.
• "Because of scarcity, individuals must make choices": Scarcity forces trade - offs/choices. Correct.

Answer:

A. All useful resources are limited in their supply
C. The wants and needs of people are unlimited.
D. Resources are scarce, which explains why we are willing to pay for them.
G. Because of scarcity, individuals must make choices.