The notion of scarce economic resources gives rise to:

The correct choice highlights the concept of opportunity costs, which is essential in economics and decision-making. When resources are scarce, individuals, businesses, and governments must make choices on how to allocate these limited resources effectively. Each choice made involves an opportunity cost, which is defined as the value of the next best alternative that is forgone when a decision is made.

For example, if a company decides to invest in new technology rather than expanding its workforce, the opportunity cost is the potential benefits that could have been gained by hiring new employees. Understanding this concept helps in analyzing trade-offs that arise due to scarcity and reinforces the importance of making informed decisions.

The other options, while relevant to economic discussions, do not directly address the relationship between scarcity and decision-making as clearly as opportunity costs do. Government interventions may arise in response to market failures or inequality but do not inherently stem from scarcity itself. Free trade agreements relate to the exchange of goods and services across borders and are not a direct result of resource scarcity within a specific economy. Lastly, unlimited desires for goods reference consumer behavior but do not encapsulate the essence of decision-making rooted in the scarcity of resources. Thus, recognizing the role of opportunity costs is fundamental in understanding how scarcity influences choices in economic contexts.