To understand how scarcity affects household decisions, let's break down each option:
A. Everything is limited, therefore households need to cons
decisions.
This choice is on the right track. Scarcity refers to limited resources compared to unlimited wants. Because of scarcity, households must make choices about how to allocate their limited resources to fulfill their various needs and wants.
B. Scarcity does not affect household decisions.
This statement is incorrect. Scarcity is a fundamental concept in economics that influences how households, businesses, and societies make decisions due to the limited availability of resources.
C. Scarcity requires people to purchase private property.
This choice is incorrect. Scarcity does not specifically necessitate the purchase of private property. It revolves around the broader idea of resource allocation in the face of limited availability.
D. Scarcity means that natural resources are in abundanc
worry about the use of natural resources.
This option is also incorrect. Scarcity indicates the shortage of resources relative to demand, leading to the need for efficient resource management. It does not imply an abundance of natural resources.
In conclusion, option A best completes the statement by highlighting that scarcity necessitates households to make decisions due to the limitation of resources compared to the unlimited wants and needs they have.
