Scarcity Drives Economic Choices

Steps:

• Define scarcity as unlimited human wants exceeding limited resources.
• Recognize that scarcity requires allocation decisions in all societies.
• Evaluate each option against this core economic principle.
• Select the option that directly links scarcity to choice-making.

Why B is correct:

• Scarcity, by definition, means resources are insufficient for all wants, forcing individuals to prioritize and choose among alternatives (economic opportunity cost principle).

Why the others are wrong:

• A: Scarcity impacts everyone, not just low-income earners, as all face resource limits.
• C: Falling prices may ease affordability but do not eliminate underlying resource scarcity.
• D: Technology improves efficiency but cannot abolish scarcity due to persistent unlimited wants.

Final answer: B