ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -SSEF1 Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources. Scarcity exists because human wants exceed the capacity of available resources. This basic problem of scarcity is faced by all individuals, organizations, businesses and governments.

Detailed explanation-2: -Scarcity exists when there is not enough resources to satisfy human wants. One of the most widely known examples of resource scarcity impacting the United States is that of oil. As global oil prices increase, local gas prices inevitably rise.

Detailed explanation-3: -Scarcity is the condition of not being able to have all of the goods and services one wants because wants exceed what can be made from all available resources at any given time. The wealth that an economy generates is made possible by the circular flow of economic activity.

Detailed explanation-4: -One of the defining features of economics is scarcity, which deals with how people satisfy unlimited wants and needs with limited resources. Scarcity affects the monetary value people place on goods and services and how governments and private firms decide to distribute resources.

Detailed explanation-5: -Resource scarcity occurs when demand for a natural resource is greater than the available supply – leading to a decline in the stock of available resources. This can lead to unsustainable growth and a rise in inequality as prices rise making the resource less affordable for those who are least well-off.