GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consumers purchasing goods and services from businesses
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consumers not being able to afford different goods and services
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consumers making purchasing decisions in relation to their needs and wants
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consumers making purchasing decisions in relations to goods and services
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Detailed explanation-1: -Relative scarcity occurs when resources are scarce relative to the public’s demand. When more people want a resource, it creates a shortage caused by slow distribution or limited supply. The resource exists, but the people cannot get it immediately. Economists consider relative scarcity as a basic element of economics.
Detailed explanation-2: -Relative scarcity describes a situation where a resource is limited in supply, compared to demand. Oil is an example of a product with relative scarcity, as its supply is limited.
Detailed explanation-3: -Scarcity, also known as paucity, is an economics term used to refer to a gap between availability of limited resources and the theoretical needs of people for such resources.
Detailed explanation-4: -Opportunity Cost. It is within the context of scarcity that economists define what is perhaps the most important concept in all of economics, the concept of opportunity cost. Opportunity cost is the value of the best alternative forgone in making any choice.