ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Scarcity means you have unlimited demands but limited resources to fulfill those demands. Scarcity refers to the relationship between the wants and needs. Individuals limitless needs and wants must be suited to the available resources in the market in order to accomodate it.

Detailed explanation-2: -Wants make life more enjoyable, but they are not necessary for survival. Children also need to understand the concept of scarcity, which means they have unlimited wants and limited resources to meet those wants. Scarcity requires people to make choices.

Detailed explanation-3: -Needs represents the necessities while wants indicate desires. Needs are important for the human being to survive. As against this, wants are not as important as needs, because a person can live without wants. Needs are those items, that are required for life and does not change with time.

Detailed explanation-4: -Defining needs and wants. A need is something necessary to live and function. A want is something that can improve your quality of life. Using these criteria, a need includes food, clothing, shelter and medical care, while wants include everything else.