Question
What is the impact of scarcity on decision-making in economics?
A.
It leads to unlimited choices
B.
It only affects government decisions
C.
It has no impact on decision-making
D.
It necessitates making choices due to limited resources
A.
It leads to unlimited choices
B.
It only affects government decisions
C.
It has no impact on decision-making
D.
It necessitates making choices due to limited resources
Answers
GPT-4o mini
The correct answer is:
D. It necessitates making choices due to limited resources.
Scarcity in economics refers to the limited availability of resources compared to the unlimited wants of individuals and society. This fundamental concept requires decision-makers—whether individuals, businesses, or governments—to prioritize their choices and allocate resources efficiently, as they cannot satisfy all their desires or needs simultaneously.
D. It necessitates making choices due to limited resources.
Scarcity in economics refers to the limited availability of resources compared to the unlimited wants of individuals and society. This fundamental concept requires decision-makers—whether individuals, businesses, or governments—to prioritize their choices and allocate resources efficiently, as they cannot satisfy all their desires or needs simultaneously.