Which of the following best describes scarcity?
a. wants cannot be fulfilled and thus all goods must be rationed.
b. prices of goods are very high.
c. markets cannot properly allocate resources.
d. unlimited wants exceed the limited resources available.
scarcity is central to the study of economics because it implies that
a. every choice involves an opportunity cost.
b. wants are unlimited.
c. economic agents are rational.
d. society must make decisions at the margin.