ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Oil is considered scarce when its supply falls short of a specified level of demand. If supply cannot meet demand at the prevailing price, prices must rise to encourage more supply and to ration demand. In this sense, oil scarcity is reflected in the market price.

Detailed explanation-3: -Things that are scarce, like gold, diamonds, or certain kinds of knowledge, are more valuable for being scarce because sellers of these goods and services can set higher prices.

Detailed explanation-4: -The world’s first oil crisis In 1973, the Organisation of Arab Petroleum Exporting Countries instigated a Western oil embargo following American support for Israel in the Yom Kippur War against Egypt and Syria. Oil supplies became scarce and prices nearly quadrupled.