Moderate

Resources in an economy ?

Correct answer: D. Are limited at any moment in time

  • A. Are always found
  • B. Can never decease
  • C. Always increase over time
  • D. Are limited at any moment in time

Explanation

Scarcity is the basic economic problem: available resources are insufficient to satisfy all human wants at a given time. Resources may increase later, but they remain limited relative to wants.

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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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