ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How to keep consumers out of debt?
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How to fulfill our unlimited wants and needs with limited resources?
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How to figure out the way to make the most money?
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How do we ensure all people get a college education?
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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.
Detailed explanation-2: -The fundamental problem in economics is the issue with the scarcity of resources but unlimited wants. Economics has also pointed out that a man’s needs cannot be fulfilled. The more our needs are fulfilled, the more wants we develop with time. By definition, scarcity implies a limited quantity of resources.
Detailed explanation-3: -people use their scarce resources to satisfy their unlimited wants. businesses supply unlimited goods & services with limited resources.
Detailed explanation-4: -The most important economic problem is the scarcity of resources. The resources that are used to satisfy our wants are limited in supply. Due to this problem all the wants and desires of a man cannot be fulfilled as the wants are never-ending. This requires the efficient use of resources.
Detailed explanation-5: -Human wants are unlimited and resources to satisfy these wants are limited and these limited resources have alternative uses. ‘ Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources which leads to the lesser supply of resources as compared to the demand for them.