Basic Economics Concepts Quiz

Scarcity refers to the situation in which the resources available are not enough to satisfy all people’s wants. An example from the text is wanting 15 units of a good when the supply is only 10 units, resulting in scarcity.

Wants are human desires for goods and services.

Resources are anything that can be used to produce goods and services to satisfy human wants. An example from the text is the supply of a good, which is a resource used to satisfy human wants.

<p>Limited resources lead to scarcity when the demands for goods and services exceed the available resources to produce them due to unlimited wants.</p> Signup and view all the answers

<p>Scarcity influences economic decisions and behaviors as individuals and societies must allocate limited resources to fulfill unlimited wants, leading to choices, trade-offs, and the need for efficient resource management.</p> Signup and view all the answers