“Scarcity of resources exist only at the macro level”.
Which of the following is true in regards to the above statement?
Answer & explanation
Correct answer: option 2
The correct answer is option 2: The statement is false
- Scarcity of resources is a fundamental concept in economics that applies at both macro and micro levels.
- At the macro level, scarcity exists because resources (like land, labor, and capital) are limited relative to the needs of an entire economy.
- At the micro level, scarcity affects individuals, households, and firms as they have limited income, time, and resources to fulfill their wants.