QUESTION IMAGE
Question
scarcity
economics is the study and practice of making a world of limited resources (scarcity). scarcity and is a key concept in decision making. scarci to a number of things such as money, employees, time etc., and means the demand is greater than the availability. scarcity drives demand. if the demand is high but the item is scarce, the price of that item increases.
opportunity cost
opportunity cost represents the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. opportunity costs help people make better choices primarily by considering the alternatives. lost time, production and finances are examples of opportunity costs. those costs are forward looking and not limited to monetary or financial costs.
scarcity drives what?
demand
abundance of goods
free lunches
From the text about Scarcity, it is stated that "Scarcity drives demand". The other options, "abundance of goods" and "free lunches", are not supported by the given information as scarcity implies limited resources, not abundance, and the concept of scarcity doesn't relate to free lunches.
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A. demand