ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources which leads to the lesser supply of resources as compared to the demand for them. The basic concern of an economy is to allocate the scarce resources to the best possible use in order to satisfy maximum wants.

Detailed explanation-2: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.

Detailed explanation-3: -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.

Detailed explanation-4: -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-5: -Demand-induced scarcity reflecting rising demand. Supply-induced scarcity caused by diminished supply. Structural scarcity attributable to mismanagement or inequality.