ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Having too many resources
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Not having enough resources
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Either A or B
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None of the above
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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: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.
Detailed explanation-3: -Causes of Economic Scarcity Growing demand and inadequate supply and corresponding economic shortage. Decline in supply due to economic or environmental reasons. Unequal distribution of natural resources creates a scarcity of specific resources in certain places. Government intervention.
Detailed explanation-4: -Key Difference Between Scarcity and Shortage Scarcity refers to the limited availability of a resource, while shortage refers to a temporary deficit of a resource in a specific market or location. In other words, scarcity is a fundamental aspect of the economy, while shortage is a temporary market condition.
Detailed explanation-5: -Societies can deal with scarcity by increasing supply. The more goods and services available to all, the less scarcity there will be. Of course, increasing supply comes with limitations, such as production capacity, land available for use, time, and so on. Another way to deal with scarcity is by reducing demand.