What is the definition of scarcity?

• The next best alternative given up when a choice is made.

• Giving up some of one thing to get more of another.

• Unlimited wants chasing limited resources.

• Costs that have already been incurred (or paid for) and cannot be recovered.

What are the three criteria used to determine if an item is considered scarce?

Answer explanation

For an item to be considered scarce, it must meet the following 3 criteria:

IT IS DESIRABLE

IT IS LIMITED

HAVE MORE THAN ONE USE

Coffee is considered​ (a)  

• Scarce
• Not Scarce
• Scarce, but not treated as Scarce

Seashells on ocean beaches are considered (a)   ​

• Not Scarce
• Scarce, but not being treated as scarce
• Scarce

Corn is considered (a)   ​

• Scarce
• Not Scarce
• Scarce, but not being treated as scarce

Water fountains in Rome flow continuously with water carried by viaducts from the Italian mountains. People walking in Rome quench their thirst​ by drinking from these fountains. But most of the water flows into the street and down the drains to a river that passes through the city. The water is​ ​ ​ ​ ​ ​ ​ (a)  

• Scarce
• not scarce
• Scarce, but not being treated as scarce

At closing time, restaurants in the United States are required to throw away all uneaten food. To meet health standards for food preparation and the safety of consumers, the food cannot be stored for use the next day. Also, the law prohibits restaurant employees from giving the food to the poor or dispersing it to the local food bank. Food in this scenario is​ (a)  

• Scarce, but not being treated as scarce.
• Scarce
• Not Scarce

Oxygen is taken from the air and stored in containers. When divers wish to stay underwater for long periods of time, they purchase container-stored oxygen and breathe from it during their underwater activities. The oxygen in this situation is considered​ (a)  

• Scarce
• Not Scarce
• Scarce, but not being treated as scarce

Which of the following statements is NOT consistent with the concept of scarcity?

• People are scarce because they have many valuable uses in the world.

• Trash is scarce because you rarely see much of it around unless you go to a landfill.

• Knowledge is scarce because what we wish to know is so great relative to what we do know at this time.

• Electricity is scarce because it has many valuable uses.

Which of the following resources was considered scarce in 1000 AD?

• Petroleum

• Aluminum

• Computers

• None of these resources were considered scarce.

• All of these resources were considered scarce.