Scarcity arises from unlimited wants versus limited resources

Steps:

• Identify the core economic concept: Scarcity is the gap between limited resources and unlimited human desires.
• Recall the definition: Resources (land, labor, capital) are finite, but wants (goods, services) are infinite.
• Apply to choices: Evaluate which option directly causes persistent scarcity.
• Select the match: Unlimited wants ensure scarcity endures despite resource growth.

Why C is correct:

• Economics defines scarcity as resulting from unlimited human wants outpacing finite resources, making choices necessary.

Why the others are wrong:

• A: Low production may worsen scarcity but isn't its root cause; even high production can't satisfy all wants.
• B: Resources are limited, not unlimited; this contradicts the scarcity principle.
• D: High production costs influence allocation but don't explain why scarcity always exists.

Final answer: C