Which of the following is a consequence of scarcity?

The concept of scarcity refers to the fundamental economic problem that arises because resources are limited while human wants are virtually unlimited. As a result, individuals, businesses, and governments face the necessity to make choices about how to allocate these scarce resources effectively.

This fundamental dynamic leads to the need for making economic choices, which is the essence of option C. When resources are not sufficient to satisfy every desire or need, individuals must prioritize their options, deciding what to produce, what to consume, and how to distribute resources among competing uses. These choices often involve trade-offs, as selecting one option may mean forgoing another.

In contrast, other options such as increased variety of goods, unlimited production capabilities, or higher consumer confidence do not directly stem from the condition of scarcity. Increased variety of goods may arise in a market with sufficient resources, while unlimited production capabilities contradict the very nature of scarcity, as it suggests an abundance of resources. Moreover, higher consumer confidence does not inherently result from scarcity; rather, it can be influenced by various factors in the economy that are unrelated to the fundamental issue of resource limitation.