ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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yes
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no
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Either A or B
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None of the above
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Detailed explanation-1: -Things that are scarce, like gold, diamonds, or certain kinds of knowledge, are more valuable for being scarce because sellers of these goods and services can set higher prices.
Detailed explanation-2: -Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.
Detailed explanation-3: -Scarcity means that the wants of people and their resources are limited. It occurs when there are no resources to satisfy wants. Also, scarcity occurs because people always want more, but they don’t have enough resources for their wants. We can say that scarcity never ends because we have more wants than resources.
Detailed explanation-4: -Natural resources like gold, oil, silver and other fossil fuels are naturally rare. When demand exceeds the supply, these resources become scarce and prices can go up. Other commodities, like diamonds, command a high price because of their limited availability and control of their market.