ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A Wants are limited.
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B Wants exceed resources.
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C Resources are unlimited.
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D Resources are fully employed.
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E Resources are allocated efficiently.
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Detailed explanation-1: -The correct option is c) wants exceed the resources available to satisfy them. Scarcity occurs when there is more demand than supply.
Detailed explanation-2: -Answer and Explanation: The correct answer is b. Resources are scarce when compared to the demand for them. Scarcity is an economic problem, and it is defined as the gap between the unlimited wants of individuals and limited resources in the economy.
Detailed explanation-3: -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-4: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.
Detailed explanation-5: -Causes of Economic Scarcity Growing demand and inadequate supply and corresponding economic shortage. Decline in supply due to economic or environmental reasons. Unequal distribution of natural resources creates a scarcity of specific resources in certain places. Government intervention.