ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -One of the defining features of economics is scarcity, which deals with how people satisfy unlimited wants and needs with limited resources. Scarcity affects the monetary value people place on goods and services and how governments and private firms decide to distribute resources.

Detailed explanation-2: -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-3: -The economic problem of scarcity arises because needs and wants are unlimited and the resources (or means) to fulfil these wants are limited. The statement is indeed true.

Detailed explanation-4: -What to produce. How to produce. For whom to produce.