The basic economic problem of scarcity:

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Question restatement: The basic economic problem of scarcity asks us to identify the nature of scarcity in economic terms.
Option A: 'has always existed and will continue to exist.' This aligns with fundamental economic theory: scarcity arises because wants exceed available resources, and it persists over time regardless of technological progress or wealth levels. This makes sense as the core issue economists study.
Option B: 'will eventually disappear as technology continues to advance.' While technology can alleviate some scarcity by increasing efficiency or productivity, it cannot eliminate scarcity in a universal sense, because new wants continually emerge faster than resources can be produced. Therefore this claim is misleading.
Option C: 'does not apply to the wealthy in society.' Scarcity affects everyone because even wealthy individuals face limited resources relative to unlimited desires; wealth can mitigate portions of scarcity but does not remove its existence. Thus this statement is inaccurate.
Option D: 'is a problem only in developing economies.' Scarcity is a universal problem across all economies, since all societies must allocate finite resources to satisfy infinite wants. Claiming it is confined to developing economies ignores the fundamental nature of scarcity.
Summary: Each of options B, C, and D mischaracterize scarcity in ways that contradict standard economic understanding, while option A correctly captures the enduring and universal nature of scarcity. The reasoning shows why scarcity remains a central problem in economic choices, production, and resource allocation.

SP25-BL-ECON-E201-33067 E201-Active Participation Quiz 1, extended to Tuesday 10 p.m. due to MLK day, this week only, January 21)

The basic economic problem of scarcity:

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