Scarcity is defined as

• A. The abundance of resources relative to wants
• B. The desire to save more than spend
• C. Limited quantities of resources to meet unlimited wants
• D. The process of exchange in markets

Answer: (C)

Scarcity means there are limited quantities of resources to meet unlimited wants. Resources like time, money, and materials are finite, while people continually desire more things. Because there isn’t enough to go around for everyone’s every wish, choices have to be made about how to use what we have, and choosing one option means giving up another (opportunity cost). For example, in a classroom with only a few pencils, not every student can have one at the same time, so they decide how to share or allocate them.

This fits best because it captures the core idea that limits on resources force decisions about allocation. The idea of abundant resources relative to wants describes the opposite situation. The urge to save more than spend is about personal finances, not the overall availability of resources. The process of exchange in markets refers to how people trade goods and services, not the condition of having limited resources.