ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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False
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True
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Either A or B
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None of the above
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Detailed explanation-1: -Therefore, scarcity of resources is a cause of economic problems and is linked to each other. Hence the given statement is False.
Detailed explanation-2: -Why do all societies face the problem of scarcity? All societies face scarcity because all have unlimited wants and needs with limited resources. What basic choices are faced by all societies? Each society must decide what to produce, how to produce it, and for whom to produce it.
Detailed explanation-3: -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. Scarcity is important for understanding how goods and services are valued.
Detailed explanation-4: -The resources are scarce, while people have unlimited wants in an economy. Thus, scarcity is relative to the unlimited wants of the people in an economy.