Which of the following is a consequence of scarcity?

Scarcity refers to the limited nature of society's resources in relation to the unlimited wants and needs of individuals. As a result of this limitation, choices must be made about how to allocate resources effectively. The correct answer highlights a fundamental principle of economics known as opportunity cost, which arises from scarcity.

When resources are scarce, producing more of one good inevitably means that fewer resources are available to produce another good. This trade-off is at the heart of decision-making in economics and illustrates how societies prioritize their needs and preferences based on available resources. The allocation process requires careful consideration of which goods and services are most valued by consumers or necessary for production.

In contrast, the other options do not accurately represent outcomes that arise directly from scarcity. An abundant supply of all goods contradicts the very definition of scarcity. Similarly, a lack of competition in the market does not stem from resource limitations; instead, competition often results from scarcity, as different producers vie for limited resources. Finally, equal distribution of resources is rarely a consequence of scarcity, as scarcity often leads to unequal access and distribution based on various factors such as wealth, power, and political influence.