Question

1. The concept of scarcity in economics refers to  

limited resources and unlimited wants

a shortage of food

   unlimited resources and limited wants  

the fact that resources can sometimes be limited

2.

How does a decrease in the price of smart phones affect the demand for headphones?

It will likely decrease a demand for headphones.

   

It will likely increase a supply of headphones.

  

It should not have any effect on the headphone market.

  

It will likely increase a demand for headphones.

3.

Common resources are associated with the incentive to (select all that apply)

  

overuse

   

maintain

   

protect

   

trade

   

conserve

   

neglect

Answer 1

1. Limited resources and unlimited wants

The gap between the resources which is limited and the wants of people which has no end is called as Scarcity. The endless want of people for the want of resources which has its limits creates scarcity.

2. It should not have any effect on the headphone market

Usually when one buys a smartphone, headphones come along with it. So even if the price of smartphones come down it will not affect the headphone market. And the people who otherwise want to buy a headphone have to buy it anyways, it does not depend on the price of smartphone alone as there are other phone users too in the market.

3. maintain, protect and conserve

Common resources are the resources which are most commonly used and there is a threat of overuse of it. Like for example Water, which is needed by everyone so it is a common resource and at the same time there is a threat of its overuse and being less in supply one day. So people have to save it, therefore common resource comes with a incentive to protect it, maintain it and conserve it.