BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consumers purchasing goods and services from businesses
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consumers not being able to afford different goods and services
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consumers making purchasing decisions in relation to their needs and wants
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consumers making purchasing decisions in relations to goods and services
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Detailed explanation-1: -Relative scarcity describes a situation where a resource is limited in supply, compared to demand. Oil is an example of a product with relative scarcity, as its supply is limited.
Detailed explanation-2: -Scarcity means individuals, businesses and governments have to deal with the problem of unlimited wants, but limited resources. Every economic system, from capitalism to socialism, has to deal with the problem of scarcity whereby the demand is greater than the supply.
Detailed explanation-3: -If we only had more resources we could produce more goods and services and satisfy more of our wants. This will reduce scarcity and give us more satisfaction (more good and services). All societies therefore try to achieve economic growth. A second way for a society to handle scarcity is to reduce its wants.