ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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People have unlimited wants but limited resources
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Inexpensive production means more profit
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People have limited wants but unlimited resources
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There is a cost to every decision
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Detailed explanation-1: -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-2: -Resources are scarce because we live in a world in which humans’ wants are infinite but the land, labor, and capital required to satisfy those wants are limited. This conflict between society’s unlimited wants and our limited resources means choices must be made when deciding how to allocate scarce resources.
Detailed explanation-3: -The correct answer is d. The problem will exist as long as resources are available in limited amounts.
Detailed explanation-4: -Scarcity is the concept that resources are only available in limited supply, whereas society’s demand for those resources is essentially unlimited.
Detailed explanation-5: -’Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources. The basic concern of an economy is to allocate the scarce resources to the best possible use in the face of unlimited wants. Thus, the problem of scarcity forces an economy to make a choice among various alternatives.