An example of scarcity is ...

An example of scarcity is ...

• A. Unlimited oil supplies
• B. Limited oil supplies
• C. Abundant water
• D. Surplus goods

Answer: (B)

Scarcity means there aren’t enough of a resource to satisfy everyone’s wants, so choices must be made about how to use it. Oil is a resource that exists in finite amounts, and demand for it often exceeds what’s available at a given time. When oil supplies are limited, people and governments must decide how to allocate it, set prices, and determine priorities, which is the essence of scarcity. The other options describe situations with plenty: unlimited oil supplies would remove scarcity, abundant water suggests no shortage, and surplus goods mean more than enough supply, not a shortage.

Scarcity means there aren’t enough of a resource to satisfy everyone’s wants, so choices must be made about how to use it. Oil is a resource that exists in finite amounts, and demand for it often exceeds what’s available at a given time. When oil supplies are limited, people and governments must decide how to allocate it, set prices, and determine priorities, which is the essence of scarcity. The other options describe situations with plenty: unlimited oil supplies would remove scarcity, abundant water suggests no shortage, and surplus goods mean more than enough supply, not a shortage.