ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Demand-induced scarcity reflecting rising demand. Supply-induced scarcity caused by diminished supply. Structural scarcity attributable to mismanagement or inequality.

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 is the basic economic problem. It arises from the insufficiency of resources to satisfy people’s wants. Scarcity is ubiquitous. Rich people face scarcity when they want more than they can buy, when they can’t be in two places at once, and when, accordingly, they must choose among alternatives.

Detailed explanation-4: -Since economics is the study of how people make choices, without scarcity there would exist no choice and, hence, no economics. Thus, scarcity is one of the fundamental premises of economics.