ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Scarcity, also known as paucity, is an economics term used to refer to a gap between availability of limited resources and the theoretical needs of people for such resources.

Detailed explanation-3: -In economics, the concept of scarcity conveys the opportunity cost of allocating limited resources. Scarce goods are those for which demand would exceed supply if they were free. Common resources like clean air and a sustainable climate have been increasingly recognized as scarce goods with costs as well as value.

Detailed explanation-4: -Scarcity is the concept that resources are only available in limited supply, whereas society’s demand for those resources is essentially unlimited.

Detailed explanation-5: -Scarcity means individuals, businesses and governments have to deal with the problem of unlimited wants, but limited resources. Every economic system, from capitalism to socialism, has to deal with the problem of scarcity whereby the demand is greater than the supply.