Economic choice and competitive behavior are the result of
a. private ownership of resources.
b. scarcity.
c. poverty.
d. public ownership of resources.
Answer: b. scarcity.
Economic demand and a competition are the next elements which can be traced back to one common cause. This common cause is called scarcity. Scarcity is the situation where resources – something that needs to be consumed, bears the supply or cannot be substituted by alternatives like labor or engine – are less when required or demanded for which there is higher quantity needed. Given that resources are limited, options must be created to the extent of individuals, businesses and the community as a whole that aim at efficient use of these resources. This necessity for decision-making in the face of scarcity gives rise to economic choices, where individuals and entities must prioritize their wants and needs based on the constraints of limited resources. Besides rivalry which results when multiple parties fight for finite resources because they can only be available to one of them at a time, competitive behaviors are also created in marketing, industries, and economic systems. Basically, the natural scarcity is an important factor that guides the decision-making process and stabilizes composite interaction among economic agents
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