ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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choose
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refuse
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forget
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avoid
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Detailed explanation-1: -Economics is the study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively. The two branches of economics are microeconomics and macroeconomics. Economics focuses on efficiency in production and exchange.
Detailed explanation-2: -As scarce resources have a value greater than zero (a ‘positive price tag’), they can be allocated depending on who pays the most for them. One way of obtaining more scarce resources is buying more of them using another scarce resource – money – which means it involves a trade-off of value.
Detailed explanation-3: -Economics is the study of how societies, governments, businesses, households, and individuals allocate their scarce resources.
Detailed explanation-4: -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-5: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.