ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Human wants are unlimited. we may satisfy some of our wants but soon new wants arise. It is impossible to produce goods and services so as to satisfy all wants of people. Thus scarcity explains the relationship between limited resources and unlimited wants and the problem there in.

Detailed explanation-2: -"Unlimited wants” refers to the fact that individuals and households want to purchase an unlimited amount of goods and services. The problem, however, is that they have scarce resources, such as time and money.

Detailed explanation-3: -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-4: -Unlimited wants refers to human tastes that are never satisfied with the various goods and services they already have. We always want more. Suppose you already have a car. However, you want something more luxurious, say, want to buy a sports car.