ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Scarcity in economics is a term describing finite resources, or the perception of limited resources, when there is not enough to fulfill human needs and wants.

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 can involve non-renewable resources, such as oil, precious metals and helium. It can also involve potentially renewable resources, which are being consumed faster than their ability to replenish (e.g. over-fishing, excess use of fresh water.)”

Detailed explanation-5: -Money, space, time, and energy are not scarce because you don’t have as much of them as you want. That’s part of what creates scarcity, but it is not scarcity in and of itself.