GENERAL KNOWLEDGE

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: -Scarcity of resources’ implies that there are unlimited wants to be fulfilled by limited resources which leads to the lesser supply of resources as compared to the demand for them. The basic concern of an economy is to allocate the scarce resources to the best possible use in order to satisfy maximum wants.

Detailed explanation-3: -The resources that we value-time, money, labor, tools, land, and raw materials-exist in limited supply. There are simply never enough resources to meet all our needs and desires. This condition is known as scarcity.

Detailed explanation-4: -Understanding Scarcity In his 1932 Essay on the Nature and Significance of Economic Science, British economist Lionel Robbins defined the discipline in terms of scarcity: Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses. 4.