ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic efficiency refers to how effectively a society’s scarce resources are used to produce goods. Economists have several ways of measuring economic efficiency, based on the allocation of inputs, costs, or the allocation of final consumer goods.

Detailed explanation-2: -Scarce goods are those for which demand would exceed supply if they were free. Common resources like clean air and a sustainable climate have been increasingly recognized as scarce goods with costs as well as value.

Detailed explanation-3: -Resource scarcity can lead to price volatility and high prices. Since the need for materials may grow rapidly in the coming decades, the impact on sourcing practices can be disruptive in material-intensive industries. A circular business model can help to better control and reduce sourcing costs.

Detailed explanation-4: -What is Scarcity? Scarcity, also known as paucity, is an economics term used to refer to a gap between availability of limited resources and the theoretical needs of people for such resources.