ECONOMICS
PRODUCTIVITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The amount available is not enough to meet the demands of society
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The amount available can satisfy the demands of society
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Its price far exceeds the value of the item.
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One company is responsible for producing the product.
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Detailed explanation-1: -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-2: -Scarcity is so fundamental to economics that scarce goods are also known as economic goods. In economics, scarce goods are those for which demand would exceed supply at a price of zero.
Detailed explanation-3: -Most goods (and services) are economic goods, i.e. they are scarce. Scarce goods are those for which the demand would be greater than the supply if their price were zero. Because of this shortage, economic goods have a positive price in the market. That is, consumers have to pay to get them.
Detailed explanation-4: -When raw materials become scarce, their prices increase, leading to higher supply costs. For example, T-shirts are always “scarce” products because their demand is limitless, while their supply may fall short.