Future Business Leaders of America (FBLA) Marketing Practice Test

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What is the result of unlimited wants and needs combined with limited resources?

  1. Inflation

  2. Surplus

  3. Scarcity

  4. Equilibrium

The correct answer is: Scarcity

The concept of unlimited wants and needs juxtaposed with limited resources leads to the phenomenon of scarcity. Scarcity refers to the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. Because resources such as time, money, land, and materials are finite, they cannot satisfy all our desires. This means that even as individuals or societies aspire for more and better goods and services, there will never be enough resources to meet every demand. The result is a situation where choices must be made about how to allocate those limited resources effectively. Scarcity drives the need for prioritization and decision-making in economics, influencing everything from personal finance to governmental economic policies.

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