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: -Scarcity describes the condition in which our wants are greater than the resources available to satisfy those wants.

Detailed explanation-4: -Scarcity is so fundamental to economics that scarce goods are also known as economic goods. In economics, scarce goods are those for which demand would exceed supply at a price of zero.

Detailed explanation-5: -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.