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: -Societies can deal with scarcity by increasing supply. The more goods and services available to all, the less scarcity there will be. Of course, increasing supply comes with limitations, such as production capacity, land available for use, time, and so on. Another way to deal with scarcity is by reducing demand.

Detailed explanation-3: -Since human wants are unlimited, and resources used to satisfy those wants are limited-there is scarcity.

Detailed explanation-4: -The ability to make decisions comes with a limited capacity. The scarcity state depletes this finite capacity of decision-making. Lack of time or the money scarce, either of the two produces anxiety that ends in a poor decision.

Detailed explanation-5: -Scarcity means human wants for goods and services exceed the available supply. Supply is limited because resources are limited. Demand, however, is virtually unlimited.