Question

why does scarcity exist?
people are greedy and use resources wastefully.
there are not enough resources to produce everyone’s wants.
the quantity of goods and services demanded exceeds quantity of goods and services supplied.
people have more wants than needs.

Explanation:

• Option 1: Scarcity is not caused by greed or waste; it's about resource - want imbalance, so this is wrong.
• Option 2: Scarcity exists because resources (like land, labor, capital) are limited, and these limited resources can't satisfy all people's wants (which are unlimited). This matches the economic definition of scarcity.
• Option 3: This describes a shortage (a market - related situation of excess demand), not scarcity. Scarcity is a fundamental economic problem about limited resources vs unlimited wants, not just a market imbalance.
• Option 4: The distinction between wants and needs isn't the cause of scarcity. Scarcity is about limited resources relative to unlimited wants (whether they are needs or other wants).

Answer:

B. There are not enough resources to produce everyone’s wants.