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: -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-3: -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-4: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.

Detailed explanation-5: -What is Scarcity?” Economic situation where there are limited quantities of resources to meet unlimited wants and needs.