Multiple choice

The law of scarcity

  1. does not apply to developed countries

  2. applies only to the less developed countries

  3. implies that consumers wants will be satisfied in a socialistic system

  4. implies that consumers wants will never be completely satisfied

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Scarcity is the fundamental economic problem - limited resources cannot satisfy unlimited human wants. This applies universally regardless of economic system or development level. Option D correctly states that consumer wants can never be fully satisfied due to resource constraints. Options A and B are wrong because scarcity applies to ALL countries, developed or not. Option C is wrong because socialism doesn't eliminate scarcity - it's a different allocation system, still resource-constrained.