Practice Quiz

CLEP Social Sciences

Category - Social Sciences

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Economic pundits are predicting that local construction markets will most likely experience an increase in steel prices of nearly 20% in a coming 48 months. This is due to a shortage of available steel which will not be enough for all the needs of projected construction companies. What is this an example of?
  1. Uncontrolled greed
  2. Under-planning
  3. Scarcity
  4. Over-consumption
Explanation
Answer - C - This is an example of scarcity.

Key Takeaway: Scarcity occurs when available resources are not enough for all wants and needs. In this example, the shortage of steel in the construction industry threatens constructions projects. Within an economic system, scarcity is implicated in price fluctuations.
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