Question

Economic scarcity exists

only when an economy fails to use its resources fully or efficiently.

only when the price that consumers are willing and able to pay for a good exceeds its cost.

when human needs and wants are limited and the economy’s ability to satisfy them is unlimited.

when human needs, wants, and desires exceed an economy’s ability to satisfy them given available resources and current technology.

only when all goods and resources are physically scarce and current technology is limited.

Apple’s iPhones are

not economically scarce because tens of millions of iPhones will be produced and sold this year.

not economically scarce because anyone who wants an iPhone can buy an iPhone.

not economically scarce because people do not have to compete for iPhones nor do iPhones need to be rationed by some mechanism.

economically scarce because people need, want, or desire more iPhones than Apple can produce and so people must sacrifice or give up something (i.e., pay a price) in order to obtain an iPhone.

economically scarce only because a limited number of iPhones can be produced in a given year.

economically scarce only if a shortage of iPhones exists.

Which of the following is economically scarce?

Smartphones.

Bottled water.

Crude oil.

Diamonds.

All of the above goods or resources are economically scarce.

None of the above goods or resources are economically scarce.

Answer 1

1. Economic scarcity exists

when human needs, wants, and desires exceed an economy’s ability to satisfy them given available resources and current technology.

2. Apple’s iPhones are

not economically scarce because people do not have to compete for iPhones nor do iPhones need to be rationed by some mechanism.

3. Which of the following is economically scarce?

Crude oil.