Scarcity of Resources

What is the concept of scarcity?

Scarcity is the limited availability of a commodity that might be in constant high demand in the market.

What is the most important example of a scarce resource?

A. Clean air
B. Gold
C. Clean drinkable water
D. Fossil fuels

Concept of Scarcity

Scarcity refers to the limited availability of a resource in comparison to the limitless wants and needs for that resource. It is a fundamental concept in economics that affects various aspects of our daily lives.

Most important example of a scarce resource

The correct answer is C. Clean drinkable water.

Scarcity is a concept that is central to the study of economics. It arises from the basic economic problem of unlimited wants and needs in a world of limited resources. When resources are scarce, it means that there are not enough resources available to satisfy all the wants and needs of people.

One of the most critical examples of a scarce resource is clean drinkable water. While water covers a significant portion of the Earth's surface, only a small percentage of it is freshwater that is suitable for human consumption. With the growing global population and increasing pollution of water sources, access to clean drinkable water is becoming more challenging.

Due to the scarcity of resources like clean water, it is essential for societies to practice sustainable resource management and conservation efforts to ensure that future generations will also have access to these vital resources.

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