Question

which of these statements demonstrate the economic concept of scarcity? check all that apply.
all useful resources are limited in their supply.
everyone is able to meet all their wants and needs
the wants and needs of people are unlimited.
resources are scarce, which explains why we are willing to pay for them.
a large economy is able to eliminate the effects of scarcity.
because of scarcity, individuals must make choices.

Explanation:

• All useful resources are limited in their supply: Scarcity exists because resources (like land, labor, capital) are finite. This statement directly addresses the limited supply of useful resources, a key part of scarcity.
• Everyone is able to meet all their wants and needs: This is incorrect. Scarcity means wants/needs exceed available resources, so not everyone can meet all their wants/needs.
• The wants and needs of people are unlimited: Scarcity arises from the combination of unlimited wants/needs and limited resources. This statement correctly identifies the unlimited nature of human wants/needs, a component of scarcity.
• Resources are scarce, which explains why we are willing to pay for them: If resources were not scarce (unlimited), they would have no value (we wouldn't pay for them). The fact that we pay shows scarcity (limited availability relative to demand).
• A large economy is able to eliminate the effects of scarcity: Scarcity is a fundamental economic problem because resources are always limited and wants are always unlimited, regardless of the economy's size. So this is incorrect.
• Because of scarcity, individuals must make choices: When resources are scarce (limited) and wants are unlimited, people have to choose how to allocate resources, which is a direct result of scarcity.

Answer:

• All useful resources are limited in their supply
• The wants and needs of people are unlimited.
• Resources are scarce, which explains why we are willing to pay for them.
• Because of scarcity, individuals must make choices.