One of the characteristics of economic resource is scarcity. Which is the other?a)They have alternate usesb)They are available in limited quantityc)They are in abundanced)They are not marketableCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Economics is scracity because they have alternative uses... It is the important characteristics of economy

Answer

A because resources due to problem of choice prevailing in economy...

Answer

(A) they have alternate uses

Answer

Human wants are unlimited but resources or means to satisfy them are limited. They are material and non- material goods like time, money, services, resources etc. These resources are scarce. Here the term scarcity is used not in the absolute sense but in the relative sense i.e., in relation to demand.

Answer

Economic resources are the inputs or factors of production used to produce goods and services in an economy. These resources are limited in nature, and their scarcity is one of the key characteristics. However, another important characteristic of economic resources is that they have alternate uses.

Alternate Uses of Economic Resources:

1. Different Production Possibilities:
- Economic resources can be used in various ways to produce different goods and services.
- For example, a piece of land can be utilized for agriculture, residential purposes, or commercial development.

2. Trade-offs:
- Due to the limited availability of economic resources, societies and individuals must make choices and trade-offs.
- Using resources for one purpose means sacrificing the opportunity to use them for another purpose.
- For instance, a business might have to choose between investing in research and development or expanding production capacity.

3. Opportunity Cost:
- The concept of opportunity cost is closely related to the alternate uses of economic resources.
- Opportunity cost refers to the value of the next best alternative that must be foregone when making a choice.
- When resources are used for one purpose, the opportunity cost is the value of the alternative use.

4. Resource Allocation:
- The allocation of economic resources is an important decision-making process in an economy.
- Governments, businesses, and individuals must determine how to allocate resources efficiently to meet their needs and wants.
- This involves considering the alternate uses of resources and making choices based on their relative value and scarcity.

In conclusion, while scarcity is one of the characteristics of economic resources, the other important characteristic is that they have alternate uses. These resources can be utilized in different ways to produce various goods and services, and societies must make choices and trade-offs based on their opportunity cost and relative value.

Similar Commerce Doubts

One of the characteristics of economic resource is scarcity. Which is the other?

What is a limitation common to both the current and quick ratio?

Sale of marketable securities at par would result in outflow or inflow of cash?

Opportunity cost is the

Top Courses for CommerceView all

Chapter Notes for Commerce

Economics Class 12

Economics Class 11

NCERT Books & Solutions for Commerce

Economics for CBSE Class 12 Board Examinations

Top Courses for Commerce

Top Courses for Commerce

Suggested Free Tests

Related Content

Commerce Courses

Other Courses

How To Prepare?

Related Exams

Company