Question
How does scarcity determine the economic value of an item?
by the amount of goods that are produced
by the capital required to build the factory
by the unlimited wants of the consumers
by the resources consumed in production
by the amount of goods that are produced
by the capital required to build the factory
by the unlimited wants of the consumers
by the resources consumed in production
Answers
Answered by
GPT-5 mini
by the resources consumed in production
Explanation: Economic value arises because resources (land, labor, capital) are limited. The more scarce the resources needed to produce an item (or the greater the opportunity cost), the higher its economic value. Unlimited wants or output levels matter for demand and supply, but scarcity of resources is the fundamental cause of economic value.
Explanation: Economic value arises because resources (land, labor, capital) are limited. The more scarce the resources needed to produce an item (or the greater the opportunity cost), the higher its economic value. Unlimited wants or output levels matter for demand and supply, but scarcity of resources is the fundamental cause of economic value.
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