Question

Scarcity means producing less goods and services in a given time period.

• A. True
• B. False

Answer 1

The correct option is B False

Scarcity refers to the limited supply of resources which are demanded in the economy. It does not mean producing less goods and services in a given time period. Scarcity of resources is the central problem of the economy. Because the human wants are unlimited and these resources are limited and have alternative uses.