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Which of the following statements is true?

A. Goods are scarce for both the poor and the rich.
B. Goods are scarce for the rich but not for the poor.
C. Goods are scarcer than services in an economy.
D. Goods are scarce for neither the poor nor the rich.
E. Goods are scarce for the poor but not for the rich.



Answer :

GinnyAnswer

Final answer:

Goods are scarce for both the poor and the rich due to the concept of scarcity in economics, illustrated by opportunity costs in production. Economists study the allocation of scarce goods and the choices individuals make when faced with scarcity.


Explanation:

Scarcity is a fundamental concept in economics that applies to all individuals and societies. When resources are limited compared to wants, choices must be made. This means that goods are scarce for both the poor and the rich as scarcity necessitates trade-offs.

The production possibilities curve illustrates how an increase in the production of one good leads to a decrease in the production of another, highlighting opportunity costs. Economists study how scarce goods are allocated and the choices people make in the face of scarcity.


Learn more about Scarcity in Economics here:

https://brainly.com/question/17430147


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