ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Scarcity is one of the key concepts of economics. 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.

Detailed explanation-2: -Scarcity means there are not enough resources, goods, and services to satisfy the wants and needs of all individuals, families, and societies.

Detailed explanation-3: -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-4: -Lesson #1 is Scarcity Scarcity describes the condition in which our wants are greater than the resources available to satisfy those wants.

Detailed explanation-5: -The phrase limited resources means that the quantities of productive resources available to the economy are finite. The economy has a finite amount of labor, capital, land, and entrepreneurship that it can use for production.