BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Not all wants can be satisfied.
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We will never be faced with the need to make choices.
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We must develop ways to decrease our individual wants.
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The discovery of new natural resources is necessary to increase our ability to satisfy wants.
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Detailed explanation-1: -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.
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: -Resource scarcity occurs when demand for a natural resource is greater than the available supply – leading to a decline in the stock of available resources. This can lead to unsustainable growth and a rise in inequality as prices rise making the resource less affordable for those who are least well-off.
Detailed explanation-4: -Resource scarcity can lead to price volatility and high prices. Since the need for materials may grow rapidly in the coming decades, the impact on sourcing practices can be disruptive in material-intensive industries. A circular business model can help to better control and reduce sourcing costs.
Detailed explanation-5: -There are three causes of scarcity – demand-induced, supply-induced, and structural.