95
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Question 95 • FL-0708340-Spanish 1 LMS

Which scenario best describes how scarcity affects a producer’s decision about what to produce?

Answer
A
A toy company specializes in stuffed toys. The company decides to produce a stuffed turkey in a Pilgrim’s outfit in the months leading up to Thanksgiving.
B
A farmer normally plants soybeans, which require a lot of water. Because the farm is in an area experiencing a drought, the farmer decides to plant chickpeas, which require much less water.
C
A company makes plastic flamingos for lawns. An internet meme using its plastic flamingos causes an increased demand for the product. The company increases production.
D
A company creates garden supplies. In preparation for the spring and summer months, the company increases its production of garden hoses and sprinklers.

Explanation

Scarcity means resources are limited, so producers must choose how to use what they have. The drought makes water scarce for the farmer, so planting chickpeas—which require much less water than soybeans—is the best response. The other scenarios describe seasonal production or increased demand, not a choice driven by a scarce resource.

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