ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Garbage is not a scarce resource because no one wants garbage. In fact, most people pay to have it removed. Air, space, and water are commodities because, under certain circumstances, people will pay for them.

Detailed explanation-2: -While most resources and goods are scarce, some are not-for example, the air that we breathe. A resource or good that is not scarce, even when its price is zero, is called a free resource or good.

Detailed explanation-3: -It’s time to wrap things up, but before we go, always remember that the four factors of production-land, labor, capital, and entrepreneurship-are scarce resources that form the building blocks of the economy.

Detailed explanation-4: -You are probably used to thinking of natural resources such as titanium, oil, coal, gold, and diamonds as scarce. In fact, they are sometimes called “scarce resources” just to re-emphasize their limited availability.