Q
QuestionEconomics

"How does scarcity determine the economic value of an item? A. By the amount of goods that are produced B. By the capital required to build the factory C. By the unlimited wants of the consumers D. By the resources consumed in production"
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Answer

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Step 1
I'll solve this economics problem step by step:

Step 2
: Understanding Scarcity

Scarcity is a fundamental economic concept that refers to the limited availability of resources relative to unlimited human wants. This means that there are not enough resources to satisfy all possible desires and needs.

Final Answer

By the resources consumed in production The correct answer is D because scarcity is fundamentally about limited resources, and the resources required to produce an item directly impact its economic value. The more difficult or resource-intensive something is to produce, the more scarce and valuable it becomes.