ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Wealthy people like bill gates and steve jobs don’t have to deal with scarcity. Most goods are rationed by brute force. People compete for whatever their society uses as a rationing device. The production possibilities frontier (PPF) illustrates the concept of scarcity.

Detailed explanation-2: -Scarcity is the basic economic problem. It arises from the insufficiency of resources to satisfy people’s wants. Scarcity is ubiquitous. Rich people face scarcity when they want more than they can buy, when they can’t be in two places at once, and when, accordingly, they must choose among alternatives.

Detailed explanation-3: -The statement is false. The scarcity problem arises because our needs and wants are unlimited. While an increase in the productivity of our resources increases our capacity to produce more goods and services, it will still not be enough to satisfy all our needs and wants since our needs and wants are unlimited.

Detailed explanation-4: -Does the richest person in the world face the problem of scarcity? Yes, because even if you have money you will never be able to satisfy all of your wants and must therefore make choices. results from unlimited wants coupled with limited resources.

Detailed explanation-5: -Scarcity is one of the key concepts of economics. 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.