alleryStart learning →Absolute scarcity is the condition where human requirements are
AEqual to supply
BGreater than supply
CLess than supply
DUnrelated to supply
Answer & Solution
Correct answer: B. Greater than supply
Absolute scarcity arises when food needs exceed the available quantities of useful goods.
Keep practising Basic Problems of an Economy and Role of Price Mechanism
Browse all Basic Problems of an Economy and Role of Price Mechanism questions for CA Foundation, or explore more Business Economics topics.
Related questions
Malthus argued that population grows exponentially while food supply growsThe least-cost method of production relates to the problem ofMaking 100 tonnes of tea costs Country A 20 tonnes of wool. The cost per tonne of tea isA country has comparative advantage if it produces a good at a lowerAccounting profit differs from economic profit because accounting ignoresThe opportunity cost of using firm-owned resources is itsOut-of-pocket costs of a firm, easily identified, are calledOpportunity cost of a choice is the value of the