ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money is scarce because it is limited in supply. The Federal Reserve limits the supply of money so that it can be in a position to retain the value of money. Time is also scarce.

Detailed explanation-2: -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.

Detailed explanation-3: -In general, scarcity refers to the idea that resources are limited, but our wants and needs are unlimited. Scarcity is the concept that resources are only available in limited supply, whereas society’s demand for those resources is unlimited.

Detailed explanation-4: -Lesson Summary Scarcity and shortage are two fundamental concepts. Scarcity refers to the existence of limited resources that are not enough to address unlimited human needs or demands. On the other hand, shortage refers to an occurrence whereby the order in the market outdoes the supply available at a given time.