Which term refers to the lack of sufficient resources to meet unlimited human wants?

Which term refers to the lack of sufficient resources to meet unlimited human wants?

• A. Scarcity
• B. Surplus
• C. Abundance
• D. Dividends

Answer: (A)

The term that refers to the lack of sufficient resources to meet unlimited human wants is scarcity. This concept is fundamental in economics and highlights the basic problem of having limited resources while trying to satisfy unlimited desires and needs. Scarcity forces individuals, businesses, and governments to make choices about how to allocate their limited resources effectively. Understanding scarcity is crucial because it underlies all economic decision-making. It explains why individuals must prioritize their spending and why businesses and economies must make trade-offs when it comes to resource allocation. In contrast, surplus relates to having an excess of resources, abundance indicates plentiful resources, and dividends refer to payments made to shareholders, none of which address the concept of limited resources faced by human wants.

The term that refers to the lack of sufficient resources to meet unlimited human wants is scarcity. This concept is fundamental in economics and highlights the basic problem of having limited resources while trying to satisfy unlimited desires and needs. Scarcity forces individuals, businesses, and governments to make choices about how to allocate their limited resources effectively.

Understanding scarcity is crucial because it underlies all economic decision-making. It explains why individuals must prioritize their spending and why businesses and economies must make trade-offs when it comes to resource allocation. In contrast, surplus relates to having an excess of resources, abundance indicates plentiful resources, and dividends refer to payments made to shareholders, none of which address the concept of limited resources faced by human wants.