ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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limited
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unlimited
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the same as resources
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None of the above
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Detailed explanation-1: -What we want and need has no limit, i.e., it is infinite. However, what we can afford is finite, i.e., it has a limit. This is a basic condition of human existence. We are never completely satisfied with everything we consume.
Detailed explanation-2: -Since human wants are unlimited, and resources used to satisfy those wants are limited-there is scarcity.
Detailed explanation-3: -One of the defining features of economics is scarcity, which deals with how people satisfy unlimited wants and needs with limited resources. Scarcity affects the monetary value people place on goods and services and how governments and private firms decide to distribute resources.
Detailed explanation-4: -Unlimited wants essentially mean that people never get enough, that there is always something else that they would like to have. When combined with limited resources, unlimited wants result in the fundamental problem of scarcity.