BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Absolute scarcity and lack of resources in less developed countries.
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Relative scarcity i.e. scarcity in relation to the wants of the society.
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Scarcity during times of business failure and natural calamities.
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Scarcity caused on account of excessive consumption by the rich
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Detailed explanation-1: -Scarcity is one of the key concepts of economics. It means that the demand for a good or service is greater than the availability of the good or service. Therefore, scarcity can limit the choices available to the consumers who ultimately make up the economy.
Detailed explanation-2: -Scarcity of resources refers to the situation where resources are limited in quantity and have alternative uses in production of various commodities.
Detailed explanation-3: -Scarcity refers to the basic economic problem, the gap between limited – that is, scarce – resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, to satisfy basic needs and as many additional wants as possible.
Detailed explanation-4: -Absolute scarcity refers to resources that cannot ever be renewed or replaced. They are, by design, impossible to increase and cannot be substituted. On the other hand, relative scarcity refers to the more common use of scarcity as the inability to satisfy all the needs and wants of consumers.