ECONOMICS (CBSE/UGC NET)

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: -Resources are scarce because we live in a world in which humans’ wants are infinite but the land, labor, and capital required to satisfy those wants are limited. This conflict between society’s unlimited wants and our limited resources means choices must be made when deciding how to allocate scarce resources.

Detailed explanation-3: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.

Detailed explanation-4: -In general, scarcity refers to the idea that resources are limited, but our wants and needs are unlimited. Scarcity is the concept that resources are only available in limited supply, whereas society’s demand for those resources is unlimited.