ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Human wants are unlimited. This means that they are never ending and can never be fully satisfied. Since wants keep on adding, all of them cannot be satisfied due to limited resources.

Detailed explanation-2: -Consumer wants, including needs are unlimited. Consumers tend to want as much as they can get. Needs are things we must have to survive. They include food, shelter, warmth.

Detailed explanation-3: -The economic problem of scarcity arises because needs and wants are unlimited and the resources (or means) to fulfil these wants are limited. The statement is indeed true. We have unlimited needs and wants, on the one hand, and scarce resources, on the other, which leads to scarcity.

Detailed explanation-4: -Human wants are unlimited and resources to satisfy these wants are limited and these limited resources have alternative uses. ‘ Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources which leads to the lesser supply of resources as compared to the demand for them.