In the field of economics, scaraity is a primary concern. Thinking about scarcit
ID: 1140151 • Letter: I
Question
In the field of economics, scaraity is a primary concern. Thinking about scarcity in terms of the economic way of thinking, why does scarcity exist? Select the most complete definition. O the earth has a limited supply of land, labor, capital and entrepreneurial O Scarcity exists because people have unlimited wants Scarcity exists because people virtually have unlimited wants and because ability. Scarcity and poverty are the same thing: they are both unavoidable, because poverty is relative. O Scarcity exists because there are limited productive resources in the world. O Scarcity exists because people have limited incomes.Explanation / Answer
Answer :- The most complete definition of Scarcity is :-
-Scarcity is a term in which human needs are more than the goods and resources.
-It is the limited amount of commodity in a market for which there will be in demand.
It is a lack of resources for an Individual to buy.
-Due to scarcity competition arises and people work hard to meet the demand.
-Scarcity refers to a gap between resources and unlimited wants.
-It requires giving up something or sacrificing with the intention of getting more resources that is needed.
-The term refers to possible existence over obtaining a finite good.
-Scarcity includes three categories demand,supply and structural.
-Demand scarcity occurs when the population increases and the supply remains the same.
-Supply scarcity occurs when the supply is very less compared to demand and occurs due to deforestation and drought.
-Structural scarcity occurs when the population does not have same way to resources due to location.
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