ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Complete answer: Lionel Robbins who was a famous economist gave a popular explanation of ends and scarcity in the economy which is known as Robbin’s definition. He defined human needs as ends in the economy that are unlimited. The unlimited wants refer to human’s insatiable greed or appetite for things.

Detailed explanation-3: -The Economics of Seinfeld says the following regarding the term: “Unlimited wants essentially mean that people never get enough, that there is always something else that they would like to have.” “When combined with limited resources, unlimited wants result in the fundamental problem of scarcity.”

Detailed explanation-4: -The phrase limited resources means that the quantities of productive resources available to the economy are finite. The economy has a finite amount of labor, capital, land, and entrepreneurship that it can use for production. It might have a lot of those resources, but the quantities are NOT infinite.