Chapter 1, Problem 2MCQ

To determine

In case the question requires us to identify the option which is not an example of resource scarcity.

Explanation of Solution

In the given options,

• Petroleum is non-renewable source of energy which is finite in amount.
• Drought means non-availability of water which is representing the scarcity of water.
• Not enough physicians to satisfy the medical needs are representing the scarcity of doctors.
• Need of more instructional technology in classrooms is showing scarcity of technology.

Cassette tapes are obsolete product now as new upgraded technological products have been invented. People are no longer using this product, so the demand for cassette tapes is very less (almost zero) in the market. It’s more like a demand side issue.

So, cassette tapes production is not representing the scarcity issue.

Economics Concept Introduction

Scarcity means less-availability or exhaustible nature of the resources. Any goods/services which are limited in quantity are termed as scarce resource.