When people's wants exceed their economic resources, then _____ exists

Business Dec 10, 2020

When people's wants exceed their economic resources, then _____ exists.

A. opportunity costs

B. scarcity

C. specialization

D. comparative advantage

E. absolute advantage

Expert Solution

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.

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