8.) What does scarcity mean? We must make a choice. We have unlimited resources. We don't need to weigh the benefits and costs of our decisions. 2 points

## Step 1<br />The term "scarcity" in economics refers to the basic economic problem that arises because people have unlimited wants but resources are limited. This means that there are not enough resources to fulfill all the wants and needs of individuals.<br /><br />## Step 2<br />Because of this scarcity, choices must be made about how to allocate resources efficiently. This is because we cannot have everything we want, and we must decide what to produce, how to produce it, and for whom to produce it.<br /><br />## Step 3<br />The statement "We must make a choice" aligns with the concept of scarcity. This is because scarcity forces us to make choices about how to allocate our limited resources.<br /><br />## Step 4<br />The other options, "We have unlimited resources" and "We don't need to weigh the benefits and costs of our decisions", are incorrect. This is because they contradict the concept of scarcity. If we had unlimited resources, we wouldn't need to make choices about how to allocate them. Similarly, if we didn't need to weigh the benefits and costs of our decisions, we wouldn't need to make choices about how to allocate our resources.