BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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We must develop way to decrease our individual wants
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Not all wants can be satisfied.
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Resources can not satisfy any want
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Resources are very scarce and shall not be used at all
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Detailed explanation-1: -’Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources. The basic concern of an economy is to allocate the scarce resources to the best possible use in the face of unlimited wants. Thus, the problem of scarcity forces an economy to make a choice among various alternatives.
Detailed explanation-2: -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. Scarcity is important for understanding how goods and services are valued.
Detailed explanation-3: -According to the concept of scarcity, it is believed that resources are scarce, while there are unlimited human wants, which results in some wants remaining unsatisfied.