Question

Regardless of what consumers want and what producers can provide, scarcity is a problem that will continue to be a part of our economy.

Responses

True
True

False
False

Answer 1

True.

Scarcity is a fundamental economic problem because resources (time, land, labor, capital, raw materials) are limited while human wants are essentially unlimited. No matter how much production improves, choices must be made and opportunity costs incurred, so scarcity and the need to allocate resources will persist.