ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Resources are scarce because we live in a world in which humans’ wants are infinite but the land, labor, and capital required to satisfy those wants are limited. This conflict between society’s unlimited wants and our limited resources means choices must be made when deciding how to allocate scarce resources.

Detailed explanation-2: -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.

Detailed explanation-3: -The resources that will be most scarce in the future, according to the report, are water, biodiversity and air, rare earth and metals, agriculture, waste disposal, processing power, youth, health and wellness, skills and education, and time.

Detailed explanation-4: -Answer and Explanation: Wants and need are directly affected by the scarcity of resources. As the resources get scarce in nature and the alternate of that resource is either not available or has a very high switching cost then, need and wants of that particular resource increase dramatically.

Detailed explanation-5: -You are probably used to thinking of natural resources such as titanium, oil, coal, gold, and diamonds as scarce. In fact, they are sometimes called “scarce resources” just to re-emphasize their limited availability.