What economic concept refers to limited quantities of resources to meet unlimited wants?

The correct answer is scarcity. This economic concept is foundational in understanding how resources are allocated within an economy. Scarcity occurs because resources—such as land, labor, capital, and time—are finite, while human desires and needs are virtually limitless. This imbalance necessitates choices and trade-offs, as individuals, businesses, and governments must decide how to prioritize resource allocation in order to satisfy the most pressing wants or needs.

Scarcity drives many economic decisions and motivates the study of economics itself, as it compels societies to determine how best to distribute resources efficiently. This includes developing systems of supply and demand, setting prices, and creating policies that aim to optimize resource use in the face of limited availability.

The other options relate to economic concepts but do not encapsulate the idea of limited resources versus unlimited wants. For instance, surplus refers to an excess of resources, investment involves allocating resources for future gain, and demand relates to consumer desire for goods but does not directly address the issue of limited resources. Understanding scarcity helps illuminate why it is crucial to make informed decisions regarding resource management in an economy.