Question

Economic goods are considered scare resources because they

• A. Cannot be increase in quantity
• B. Do not exist in adequate quantity to satisfy social requirements
• C. Are of primary importance in satisfying social requirements
• D. Are limited to man made goods

Answer 1

The correct option is B Do not exist in adequate quantity to satisfy social requirements

Scarce resources are the workers, equipment, raw materials, and organizers used to produce scarce goods. Like the more general society-wide condition of scarcity, a given resource falls into the scarce category because it has a limited availability in combination with greater (potentially unlimited) productive uses. Economic goods are not in adequate quantity therefore resources are scares.