ECONOMICS (CBSE/UGC NET)

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ECONOMICS

SCARCITY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ is the fundamental, universal, and perpetual economic problem that no one is immune to.
A
Price floors/ price ceilings
B
Shortage
C
Scarcity
D
The study of microeconomics
Explanation: 

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 universal which is applicable to all individuals, institutions, and the economy as a whole. If there are abundant or sufficient resources then there will not be any problem in an economy. Hence, scarcity leads to economic problems.

Detailed explanation-3: -Scarcity means individuals, businesses and governments have to deal with the problem of unlimited wants, but limited resources. Every economic system, from capitalism to socialism, has to deal with the problem of scarcity whereby the demand is greater than the supply.

Detailed explanation-4: -The three basic problem of economics are: What to produce. How to produce. For whom to produce.

There is 1 question to complete.
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