ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economies are based on both economic and noneconomic wants. When a business continually adds extra workers, output is sure to increase as well. Entrepreneurs invest in their communities by contributing to the local economy and by providing jobs. Entrepreneurship thrives in a command economy.

Detailed explanation-2: -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-3: -The resources that we value-time, money, labor, tools, land, and raw materials-exist in limited supply. There are simply never enough resources to meet all our needs and desires. This condition is known as scarcity. At any moment in time, there is a finite amount of resources available.

Detailed explanation-4: -Economics does not make a distinction between wants and needs. Individuals cannot have everything they want due to scare resources. Because resources are scarce, choices have to be made as to what wants to satisfy. In making choices, wants must be prioritized.