BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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labor costs
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scarcity
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economic interdependence
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market fluctuation
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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: -Due to limited resources, scarcity is the fundamental problem of every society.
Detailed explanation-3: -Why do all societies face the problem of scarcity? All societies face scarcity because all have unlimited wants and needs with limited resources. What basic choices are faced by all societies? Each society must decide what to produce, how to produce it, and for whom to produce it.
Detailed explanation-4: -Scarcity is the basic economic problem. It arises from the insufficiency of resources to satisfy people’s wants. Scarcity is ubiquitous. Rich people face scarcity when they want more than they can buy, when they can’t be in two places at once, and when, accordingly, they must choose among alternatives.