ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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People’s wants exceed the ability of resources to satisfy them
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Opportunity costs arise only when someone spends money
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The market is always in equilibrium
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People’s wants are basically fixed
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Detailed explanation-1: -Scarcity as a concept is fundamental to economics where a basic assumption is that, given scarcity of basic resources to sustain life, individuals will be forced to economize by limiting demand and increasing supply.
Detailed explanation-2: -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-3: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.
Detailed explanation-4: -Scarcity is a fundamental term in economics and describes how the availability of supplies, raw materials or employees is crucial to producing goods and services and setting their price. Natural disasters, consumer habits, international relations and other factors can influence scarcity.