ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Scarcity explains the basic economic problem that the world has limited-or scarce-resources to meet seemingly unlimited wants, and this reality forces people to make decisions about how to allocate resources in the most efficient way.

Detailed explanation-2: -The fundamental economic problem states that human needs are diverse and continuously increasing, while resources to satisfy them are limited. Individuals or economic entities can address the fundamental economic problem by making economic choices.

Detailed explanation-3: -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-4: -The fundamental economic problem faced by all societies is Scarcity. The economic resources are insufficient to satisfy human wants and needs. Human wants are unlimited, but the means to satisfy human wants are limited. Scarcity affect the economic growth of the country.

Detailed explanation-5: -Scarcity of resources: Resources like labour, land, and capital are insufficient as compared to the demand. Therefore, the economy cannot provide everything that people want. Unlimited Human Wants: Human beings’ demands and wants are unlimited which means they will never be satisfied.