Question

The scarcity problem:

persists because economic wants exceed available productive resources.

has been eliminated in affluent societies such as the United States and Canada.

persists only because countries have failed to achieve continuous full employment.

has been solved in all industrialized nations.

Answer 1

Persist because economic wants exceed available productive resources.
Scarcity problem is considered as one of the most important problem which affects the functions of the economy. The natural or economic resources are limited in nature. But the social wants and needs of the people were unlimited. There is a contradiction occurred between this limited resources and unlimited needs. Efficient allocation of the given resources for the fulfilment of the economic needs of the people will considered as one of the most important role of economic authorities. Land, water, labour, health care, seasonal, fixed supply of roads are the most important examples of the resources in the economy. The scarcity can be classified into demand- induced scarcity and supply- induced scarcity. The scarcity of resources will lead to the market failure of the economy. The tragedy of commons was the most important problem which occurred as an aftermath of this.