Question : Economic goods are considered scarce resources because they
Option 1: cannot be increased quantity
Option 2: do not exist in adequate quantity to satisfy the requirements of the society
Option 3: are of primary importance in satisfying social requirements
Option 4: are limited to man-made goods
Correct Answer: do not exist in adequate quantity to satisfy the requirements of the society
Solution : The correct answer is (b) do not exist in adequate quantity to satisfy the requirements of the society.
Economic goods are considered scarce resources because they are not available in unlimited quantities relative to the demand or wants of society. There is a limited supply of economic goods, and their availability is insufficient to fully satisfy all the needs and wants of individuals in society. This scarcity necessitates choices and trade-offs in resource allocation.
