GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Everyone has them, and they change.
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Entrepreneurs do not invest enough of them.
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There are so many that people must decide which ones to choose at any one time.
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There are not enough available so that everyone can have as much of them as desired.
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Detailed explanation-1: -Scarcity is the situation in which available resources, or factors of production, are finite, whereas wants are infinite. There are not enough resources to produce everything that we need and want. The basic economic problem that arises because people have unlimited wants but resources are limited.
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: -There are simply never enough resources to meet all our needs and desires. This condition is known as scarcity.
Detailed explanation-4: -Answer and Explanation: There are limits to outputs from economic resources because there are a finite amount of economic resources available to create these resources. For example, there are only so many natural resources available to create every output desired by consumers.
Detailed explanation-5: -Human wants are unlimited. we may satisfy some of our wants but soon new wants arise. It is impossible to produce goods and services so as to satisfy all wants of people. Thus scarcity explains the relationship between limited resources and unlimited wants and the problem there in.