ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Which of the following is not a scarce good? Garbage is not a scarce resource because no one wants garbage. In fact, most people pay to have it removed. Air, space, and water are commodities because, under certain circumstances, people will pay for them.

Detailed explanation-2: -Non-scarce objects are something people deal with daily, whether it be trash or items that are in abundance, but have no real value like pens or pencils.

Detailed explanation-3: -You are probably used to thinking of natural resources such as titanium, oil, coal, gold, and diamonds as scarce. In fact, they are sometimes called “scarce resources” just to re-emphasize their limited availability.

Detailed explanation-4: -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-5: -It’s time to wrap things up, but before we go, always remember that the four factors of production-land, labor, capital, and entrepreneurship-are scarce resources that form the building blocks of the economy.