ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Due to limited resources, scarcity is the fundamental problem of every society.

Detailed explanation-3: -Why do all societies face the problem of scarcity? All societies face scarcity because all have unlimited wants and needs with limited resources. What basic choices are faced by all societies? Each society must decide what to produce, how to produce it, and for whom to produce it.

Detailed explanation-4: -The fundamental economic problem results from the mismatch between limited resources and unlimited wants. It is referred to as ‘scarcity’ by economists. Scarcity occurs when society cannot fulfill all its wants because resources are limited. A need is something necessary for survival.

Detailed explanation-5: -Scarcity is a fundamental term in economics and describes how the availability of supplies, raw materials or employees is crucial to producing goods and services and setting their price. Natural disasters, consumer habits, international relations and other factors can influence scarcity.