Unlimited Needs And Wants And Scarce Resources – Activity 2

2. Scarcity is a problem faced by poor households only.

Think again. The statement is false.

Both poor and rich countries experience scarcity since the problem of scarcity arises because needs and wants are unlimited and the resources (or means) to fulfil these needs and wants are limited. People in rich countries also have wants that are not satisfied. For example, they might want a third car or a bigger house.

The statement is indeed false.

Both poor and rich countries experience scarcity since the problem of scarcity arises because needs and wants are unlimited and the resources (or means) to fulfil these needs and wants are limited. People in rich countries also have wants that are not satisfied. For example, they might want a third car or a bigger house