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Resources are scarce for households and economies. Are resources plentiful for households but scarce for economies?
Resources are scarce for households and economies. Are resources plentiful for households but scarce for economies?1) True
2) False
Final answer:Scarcity applies to both households and economies because resources are limited and cannot fulfill all wants, necessitating choices regardless of scale. The concept of scarcity is fundamental to economics, which requires prioritization due to limited resources. So correct answer is option 2) False.Explanation:The statement that resources are scarce for households and economies questions a fundamental principle of economics. The correct answer is False. Both households and economies face the issue of scarcity because resources are not unlimited. The concept of scarcity underpins the necessity for making choices since resources cannot fulfill all wants and desires. This scarcity applies universally, not just to economies at large but also to individual households, which must decide how to allocate their limited resources among various wants and needs. The universality of scarcity means that, regardless of the scale - whether within a single household or across an entire economy - the available resources are insufficient to satisfy all wants fully, necessitating choices and prioritization.Why does scarcity require that we make choices? Because when resources are limited, and cannot meet every want or need, individuals and societies must prioritize where to allocate these scarce resources to maximize satisfaction or utility. This necessity to choose gives rise to the field of economics, which studies how individuals and societies manage and allocate scarce resources.Even if something is abundant, it can still be considered scarce in the economic sense if it cannot meet all possible uses simultaneously. For example, water in many regions may be plentiful, but because it cannot meet every need and want at the same time - from drinking and agriculture to industry and recreation - it is still treated as a scarce resource economically....