ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The scarcity definition in economics is when there is a significant divide between finite resources and infinite demand for the resource. Resources can be natural factors of production or actual products produced. Essentially, if a resource can be used up before the demand ends then it’s considered scarce.

Detailed explanation-2: -Natural resources like gold, oil, silver and other fossil fuels are naturally rare. When demand exceeds the supply, these resources become scarce and prices can go up. Other commodities, like diamonds, command a high price because of their limited availability and control of their market.

Detailed explanation-3: -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. Scarcity is important for understanding how goods and services are valued.

Detailed explanation-4: -There are simply never enough resources to meet all our needs and desires. This condition is known as scarcity. At any moment in time, there is a finite amount of resources available. Even when the number of resources is very large, it’s limited.