ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The statement is indeed true. Resources are required to produce goods and services. The more and better the quality of the resources, the greater the capacity will be to produce goods and services to satisfy needs and wants . Think again.

Detailed explanation-2: -Scarcity describes the condition in which our wants are greater than the resources available to satisfy those wants.

Detailed explanation-3: -“Scarcity” always exists because our needs and wants are always greater than our resource supply.

Detailed explanation-4: -Resources are scarce because we live in a world in which humans’ wants are infinite but the land, labor, and capital required to satisfy those wants are limited. This conflict between society’s unlimited wants and our limited resources means choices must be made when deciding how to allocate scarce 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.