USA HISTORY

Detailed explanation-1: -The term associated with the inability to satisfy all wants at the same time is scarcity. It is due to the greater demand of the product or services in comparison to the presence of the resources. Scarcity occurs because there are limited resources and unlimited demands.

Detailed explanation-2: -Scarcity is the basic economic problem. It arises from the insufficiency of resources to satisfy people’s wants. Scarcity is ubiquitous. Rich people face scarcity when they want more than they can buy, when they can’t be in two places at once, and when, accordingly, they must choose among alternatives.

Detailed explanation-3: -Our inability to satisfy all our wants is called scarcity. Because we face scarcity, we must make choices. The choices we make depend on the incentives we face. An incentive is a reward that encourages an action or a penalty that discourages an action. Page 5.

Detailed explanation-4: -Lesson Summary Scarcity and shortage are two fundamental concepts. Scarcity refers to the existence of limited resources that are not enough to address unlimited human needs or demands. On the other hand, shortage refers to an occurrence whereby the order in the market outdoes the supply available at a given time.