ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What are scarce natural resources? They are those that are not renewed at all, or take a long time to produce. Examples of non-renewable natural resources: oil, iron, gold and ores in general (water, soil and trees are being considered limited resources due to misuse).

Detailed explanation-2: -The resources that will be most scarce in the future, according to the report, are water, biodiversity and air, rare earth and metals, agriculture, waste disposal, processing power, youth, health and wellness, skills and education, and time.

Detailed explanation-3: -The persistent increase in oil prices over the past decade suggests that global oil markets have entered a period of increased scarcity. Given the expected rapid growth in oil demand in emerging market economies and a downshift in the trend growth of oil supply, a return to abundance is unlikely in the near term.

Detailed explanation-4: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural. Demand-induced scarcity happens when the demand of the resource increases and the supply stays the same. Supply-induced scarcity happens when a supply is very low in comparison to the demand.

Detailed explanation-5: -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.