ECONOMICS (CBSE/UGC NET)

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: -But people encounter scarcity all the time, and they find, therefore, that they must respond by making choices. Scarcity: The condition of not being able to have all of the goods and services one wants.

Detailed explanation-3: -Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources. Scarcity exists because human wants exceed the capacity of available resources. This basic problem of scarcity is faced by all individuals, organizations, businesses and governments.

Detailed explanation-4: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.

Detailed explanation-5: -Scarcity means that human wants for goods, services, and resources exceed what is available. Resources, such as labor, tools, land, and raw materials are necessary to produce the goods and services we want, but they exist in limited supply.