Question
Available resources will never be enough to satisfy all human needs and wants. This basic problem of economics leads to which outcome? Inflation expands purchasing power. Workers earn more through overtime pay. Scarcity requires people to make choices. Personal expenses increase on an annual basis 2 points
Answer
4.7
(321 Votes)
Kirk
Master · Tutor for 5 years
Answer
C
Explanation
The fundamental issue in economics is the concept of scarcity. Scarcity means that there are limited resources to meet unlimited human needs and wants. Because resources are finite, individuals, businesses, and governments must make decisions on how to allocate them most effectively. These decisions involve choosing which needs and wants to satisfy and which ones to leave unmet. This necessity to prioritize and choose due to limited resources directly leads to the outcome that "scarcity requires people to make choices." The other options provided do not directly result from the basic economic problem of scarcity.Inflation expanding purchasing power (A) is not a direct outcome of scarcity; inflation refers to the general increase in prices and decrease in the purchasing value of money. Workers earning more through overtime pay (B) is a labor issue and not a direct result of scarcity. Personal expenses increasing on an annual basis (D) could be due to various factors, including inflation or changes in personal circumstances, but it is not a direct outcome of the basic problem of scarcity in economics.Therefore, the accurate answer is that "scarcity requires people to make choices" (C).