ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Limited wants of human beings are satisfied by unlimited resources. This statement is false. Humans have unlimited demands and those are satisfied by the limited resources.

Detailed explanation-2: -Resources such as air, light and wind are available in unlimited quantities. These resources get renewed quickly or replenished quickly. Such kind of resources which are unlimited and are not affected by human activities are called Renewable resources.

Detailed explanation-3: -Human wants are unlimited. This means that they are never ending and can never be fully satisfied. Since wants keep on adding, all of them cannot be satisfied due to limited resources.

Detailed explanation-4: -All the resources in the world are limited. However, individuals’ desires and needs are unlimited. In economics, this problem is known as scarcity. Scarcity has been the key issue to solve by economists who try to effectively allocate the scarce resources in the population.

Detailed explanation-5: -Human wants are constant and infinite, but the resources to satisfy them are finite. The resources cannot exceed the amount of human and natural resources available. We produce things that we know people want, as long as we have the resources to make them.