Question

Choose the best option below that illustrates an example of scarcity.

Select the correct answer below:

The reintroduction of wolves in Yellowstone was a success in that shortly after reintroduction the wolves were removed from the Endangered Species list.

The value for ivory has increased leading to an increase in the poaching of African Elephants and a decrease in the African Elephant population.

Due to an increase in demand for craft beer in Portland, the number of microbreweries has increased.

The patent for a pharmaceutical drug expired and the drug is now being replicated by a number of other producers.

Answer 1

Solution: The value for ivory has increased leading to an increase in the poaching of African Elephants and a decrease in the African Elephant population.

Explanation: Scarcity, or limited resources and unlimited wants, is one of the most basic economic problems that individual and societies face. Scarcity refers to the inability to satisfy all human wants. . In current scenario when value for ivory rises, it causes an increase in the poaching of African Elephants and a reduction in the African Elephant population; thus depicting a scarcity due to limited resources