Question

Economics is making choices in the presence of ______.
1. emotions
2. abundance
3. scarcity
4. quality

Answer 1

Correct Answer - Option 3 : scarcity

The correct answer is Scarcity

• When faced with limited resources, we have to make choices.
• Economics is the study of how humans make choices under conditions of scarcity.
• These decisions can be made by individuals, families, businesses, or societies.
• The resources that we value, time, money, labor, tools, land, and raw materials, exist in limited supply.
• There are simply never enough resources to meet all our needs and desires. This condition is known as scarcity.
• At any moment in time, there is a finite amount of resources available. Even when the number of resources is very large, it’s limited.
• For example, the labor force in the United States contained more than 158 million workers, that’s a lot, but it’s not infinite.
• Because these resources are limited, so are the numbers of goods and services we can produce with them.