Question

why does scarcity exist? * 1pt
voluntary trade has benefits for both parties.
resources are limited, but peoples wants are unlimited.
the factors of production are endless.
people are motivated by incentives.

“peoples choices influence the price of goods and services.” this * 1 point
principle suggests that prices are set by
producers (sellers) only.
consumers (buyers) only.
producers and consumers.
government only.

in most exchanges between two people * 1 point
one person gains and the other person loses.
both people lose.
both people believe they are benefiting.
no one really benefits at all.

Explanation:

1. Scarcity exists because resources are finite while human wants are infinite. Voluntary trade, endless factors of production, and incentives are not the reasons for scarcity.
2. The principle that people's choices influence the price of goods and services implies that prices are set by the interaction of producers and consumers, not just by producers, consumers, or government alone.
3. In most exchanges between two people, both people believe they are benefiting as they engage in the exchange voluntarily expecting to gain something.

Answer:

1. Resources are limited, but people’s wants are unlimited.
2. Producers and consumers.
3. both people believe they are benefiting