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what is scarcity
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what is scarcity Related: Key Notes - Chapter 1 - Introduction (Micro...
In economics, scarcity, also known as paucity, occurs when there are limited resources to fulfill unlimited wants and needs.
Scarcity is a fundamental economic problem where limitless wants cannot be satisfied because there are limited resources available. The world has limited factors of production including land, human labor, and capital which cannot be produced as much as humans want. The scenario calls for people to make decisions on how to efficiently allocate resources so that the basic needs can be satisfied. In economics, any resource that have zero cost to consume is scarce to some extent, however, what matters is relative scarcity.
Scarcity implies that there are limited resources to satisfy unlimited human wants and needs. A resource is considered scarce if it has a cost, and these resources can come from land, human services, or capital. The cost of different resources can be used to determine the scarcity. If a commodity is expensive for example, it can imply that it exists in limited amounts or the costs of producing it are high. Scarcity also varies from place to place. A person who is living in a desert, for instance, faces scarcity of water while that may not be the case for another person living in a wetland.
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what is scarcity Related: Key Notes - Chapter 1 - Introduction (Microeconomics), Class 12, Economics
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what is scarcity Related: Key Notes - Chapter 1 - Introduction (Microeconomics), Class 12, Economics for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about what is scarcity Related: Key Notes - Chapter 1 - Introduction (Microeconomics), Class 12, Economics covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for what is scarcity Related: Key Notes - Chapter 1 - Introduction (Microeconomics), Class 12, Economics.
what is scarcity Related: Key Notes - Chapter 1 - Introduction (Microeconomics), Class 12, Economics for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about what is scarcity Related: Key Notes - Chapter 1 - Introduction (Microeconomics), Class 12, Economics covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for what is scarcity Related: Key Notes - Chapter 1 - Introduction (Microeconomics), Class 12, Economics.
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