QUESTION IMAGE
Question
which statement best describes the impact of scarcity?
people are able to meet most of their needs
consumers must pay higher prices for many items
governments must try to meet the wants of citizens
economies can work to provide more goods and services
Brief Explanations
- Analyze Option 1: Scarcity means resources are limited, so people can't meet most needs, so this is incorrect.
- Analyze Option 2: When resources are scarce, the demand for items may exceed supply, leading to higher prices as consumers compete for limited goods, so this is correct.
- Analyze Option 3: Governments' role in scarcity is about resource allocation, not just meeting wants (and wants are unlimited vs scarce resources), so this is not the best description.
- Analyze Option 4: Economies working to provide more goods is a response to scarcity, not the impact of scarcity itself, so this is incorrect.
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B. Consumers must pay higher prices for many items.