Question

1. scarcity refers to

○ a) the ability of society to employ all of its resources.
○ b) the ability of society to consume all that it produces.
○ c) the inability of society to satisfy all human wants because of limited resources.
○ d) the inability of society to eliminate poverty.

Explanation:

Scarcity is a fundamental concept in economics. It is defined as the situation where society has limited resources (such as land, labor, capital, and entrepreneurship) but has unlimited human wants. Options A and B are incorrect as they focus on ability (employment of resources and consumption of production) which is not related to the core idea of scarcity. Option D is about eliminating poverty, which is a broader social - economic goal and not the definition of scarcity. Option C correctly captures the essence of scarcity - the inability to satisfy all wants due to limited resources.

Answer:

C) the inability of society to satisfy all human wants because of limited resources.