Asked by Manuel Antonio on May 20, 2024
Verified
Statement I.Labor and capital are resources.
Statement II.Scarcity has been largely eliminated from our economy.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Scarcity
A fundamental economic problem of having seemingly unlimited human wants in a world with limited resources, which leads to the necessity of making choices on how to allocate resources.
Resources
Assets or inputs used in the production of goods and services, such as time, labor, and capital.
Economy
An extensive network of activities related to producing, consuming, and exchanging that assists in allocating limited resources.
- Absorb the fundamental principle of scarcity and its repercussions on the apportionment of resources in an economic framework.
- Explain the importance and role of capital and labor as resources in economic production.
Verified Answer
DB
David BrownMay 24, 2024
Final Answer :
A
Explanation :
Statement I is true as labor and capital are considered resources in economics. However, Statement II is false as scarcity still exists in our economy, though it may vary in degree depending on the specific resource being considered. Scarcity is a fundamental concept in economics, referring to the limited availability of resources relative to wants and needs, which necessitates choice and trade-offs.
Learning Objectives
- Absorb the fundamental principle of scarcity and its repercussions on the apportionment of resources in an economic framework.
- Explain the importance and role of capital and labor as resources in economic production.