ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economics is the study of how people deal with scarcity. 2. False. Because wants are unlimited but resources are not, scarcity is a characteristic of all economies.

Detailed explanation-2: -Economics is study of how people make choices under conditions of scarcity, and of the results of those choices for society. The study of individual choice under scarcity and its implications for the behavior of prices and quantities in individual markets.

Detailed explanation-3: -Ultimately, economics is the study of choice. Because choices range over every imaginable aspect of human experience, so does economics. Economists have investigated the nature of family life, the arts, education, crime, sports, law-the list is virtually endless because so much of our lives involves making choices.

Detailed explanation-4: -The above statement is TRUE. This also indicates the scarcity of resources in relation to wants and gives rise to the problem of choice (which wants to be satisfied given the limited resources). In this way, Economics is the study of choice under the state of Scarcity.

Detailed explanation-5: -Scarcity is the condition of having to choose among alternatives. A scarce good is one for which the choice of one alternative use of the good requires that another be given up.