ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is the gap between limited resources and limitless wants.
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Scarcity is the result of people having “Unlimited Wants and Needs.”
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Scarcity is the next best option.
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Scarcity is always wanting something new, and having “Limited Resources.”
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Detailed explanation-1: -Scarcity is a situation where the available resources are limited (not enough) to meet the unlimited needs of people.
Detailed explanation-2: -Scarcity of resources refers to the situation where resources are limited in quantity and have alternative uses in production of various commodities.
Detailed explanation-3: -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.
Detailed explanation-4: -Scarcity, or limited resources, is one of the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants. Therefore, we have to choose. We have to make trade-offs.