Which statement best describes the impact of scarcity? People are able to meet most of their needs. Consumers must pay higher prices for many items. Governments must try to meet the wants of citizens. Economies can work to provide more goods and services.
Answers
Scarcity in economics refers to the economic problem where human wants and needs are unlimited and resources are limited in nature. Thus, society has insufficient resources to fulfill all human wants and needs.
Therefore the best statement describing the impact of scarcity is:
Governments must try to meet the wants of citizens.
Government has to ensure efficient utilization and allocation of scarce resources so that more output can be generated with limited amount of resources so that consumer needs and wants can be fulfilled.
In order to understand the concept one must be aware of the meaning of the term Scarcity.
In economics scarcity refers to biggest economic problem prevailing for humans. This is the concept of everlasting wants and needs whereas there are limited resources. In such a situation where limited resources exist in contrast to unlimited wants then it tends to be a problem. Thus, it would be viable to state that certain" Governments must try to meet the wants of the citizens of their country with the best possible way of utilization of resources. Governments in general must make sure that there should be efficient utilization of scarce resources. This should happen through correct means of allocation. This would help to increase output.
Thanks for asking.