Practice question · Put in order
Order the logical chain from scarcity to prices.
- Prices signal how scarce each good really is
- Markets emerge to coordinate millions of choices
- Individuals and societies must choose among options
- Every use of a resource excludes alternative uses
- Resources are finite while wants keep growing
Hints
- Nothing can be chosen until something has to be given up.
- Prices are the visible symptom, so they come at the end.
Show the answer
- Resources are finite while wants keep growing
- Every use of a resource excludes alternative uses
- Individuals and societies must choose among options
- Markets emerge to coordinate millions of choices
- Prices signal how scarce each good really is
Why
From the founding fact to its most visible symptom: scarcity → exclusion → choice → markets → prices.
Practise Scarcity
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More questions on Scarcity
- Sort each resource into its classical factor of production.
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- Anything scarce enough to command a positive price is by definition an economic good.