Unlimited Needs And Wants And Scarce Resources – Activity 4

4. An economy's capacity to produce is limited by the quantity and quality of the available resources.

The statement is indeed true. Resources are required to produce goods and services. The more and better the quality of the resources, the greater the capacity will be to produce goods and services to satisfy needs and wants.

Think again. The statement is true. Resources are required to produce goods and services. The more and better the quality of the resources, the greater the capacity will be to produce goods and services to satisfy needs and wants.