Pennies, paper clips and pencils are all inexpensive, but they do cost something. A penny is not worth much, but it is worth something. If you had a hundred of them, you could buy a chocolate bar. But it doesn't matter how much salt water you might have at the ocean. That's worthless because there is a free oversupply. Nobody would pay anything for it, not even a penny. Thus it is not economically scarce. The correct answer is (d). | Pennies, paper clips and pencils are all inexpensive, but they do cost something. A penny is not worth much, but it is worth something. If you had a hundred of them, you could buy a chocolate bar. But it doesn't matter how much salt water you might have at the ocean. That's worthless because there is a free oversupply. Nobody would pay anything for it, not even a penny. Thus it is not economically scarce. The correct answer is (d). |