true or false. because resources are plentiful, people must make choices.
What do you think? Why?
Rick, Keisha, Adam -- please do not change screen names on this forum.
True
True. Even when resources are in abundance, people still need to make choices. This statement relates to the economic concept of scarcity. Scarcity implies that resources are limited relative to the unlimited wants and needs of individuals. People must make choices and allocate resources based on their priorities and trade-offs, even when resources are plentiful.
To understand why this is true, we can break it down into a few key points:
1. Limited Resources: Although resources may be plentiful, they are not infinite. There are always limits to the availability of resources such as time, money, natural resources, and human capital.
2. Unlimited Wants: On the other hand, human wants and needs are essentially limitless. People have diverse desires and aspirations, and they constantly seek to fulfill their needs and improve their standard of living.
3. Opportunity Cost: When individuals are faced with multiple options or choices, they must consider the opportunity cost of each choice. Opportunity cost refers to the value of the next best alternative foregone when a decision is made. Therefore, even with abundant resources, individuals must decide which option to pursue and inevitably forgo other alternatives.
4. Trade-offs: Making choices involves trade-offs. Each decision has consequences, and people need to weigh the benefits and costs of different options. Making a choice means sacrificing or giving up something in order to obtain something else.
In summary, even when resources appear abundant, people still need to make choices because of the inherent scarcity of resources and the unlimited nature of human wants and needs.