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Homework answers / question archive / When people's wants exceed their economic resources, then _____ exists
When people's wants exceed their economic resources, then _____ exists.
A. opportunity costs
B. scarcity
C. specialization
D. comparative advantage
E. absolute advantage
The correct option is B. scarcity
Explanation:
Scarcity, a term, defines the nature of an economy as the natural resources are generally non-renewable or takes so many years to rebuild, but the human needs different products and services that are manufactured using the natural resources. Limited resources are used in various items to satisfy human needs. This scenario of limited resources and unlimited human wants is known as scarcity.