ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

CHARACTERISTICS OF AN ENTREPRENEUR

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In economic terms, scarcity occurs when
A
too much money is chasing too many goods or services
B
there is not enough of a good or service to meet the demand for it
C
not enough money is available for people to buy things
D
natural resources have been used up
Explanation: 

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: -Scarcity refers to a limited supply of goods. That scarcity can then lead to high demand from consumers. According to the scarcity principle, the price of an item in low supply and high demand will steadily rise to meet the consumers’ expected demand.

Detailed explanation-3: -Answer: The four basic problems of an economy, which arise from the central problem of scarcity of resources are: What to produce? How to produce? For whom to produce?

Detailed explanation-4: -Answer and Explanation: True. Scarcity means that there is less of a good or resource available than people wish to have. Any product that is limited in supply, then it becomes scarce and, in most cases, it bears a lot of real value.

Detailed explanation-5: -Unequal distribution of resources. One of the causes of scarcity is an unequal distribution of resources. Rapid increases in demand. Another cause of scarcity occurs when demand increases more rapidly than supply can keep up with. Rapid decreases in supply. Perception of scarcity.

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