Question

Which of the following refers directly to the concept of scarcity?

• A. population explosion
• B. unlimited human wants
• C. limited resources
• D. human greed

Answer 1

Answer: (C)

limited resources

‘Scarce means’ is the fundamental problem of economics. It means that the resources in the world are limited whereas the wants of a man are unlimited and never-ending. Due to this, the resources are always insufficient to satisfy all human wants and needs. Apart from being scarce, the resources have alternative uses as well. Thus, it becomes extremely important to use the resources in the most effective and efficient manner.