Question

The word economics is most closely connected to the word ----(a) Scarcity(b) Unlimited(c) Restricted(d) Free

Answer 1

Answer:

SCARCITY AND UNLIMITED WANTS

Explanation:

SCARCITY IS LIMITATION TO SUPPLY,RELATION TO DEMAND

ALL CONSUMERS HAVE UNLIMITED WANTS BUT RESOURCES ARE LIMITED SO PEOPLE CANT AFFORD THE GOOD

Answer 2

According to the scarcity definition of Economics, pioneered by Lionel Robbins, the subject matter of Economics is most closely related to scarcity.Hence, the answer is option a) or scarcity.

Explanation:

Economics basically deals with the allocation and use of scarce resources to satisfy unending human wants and desires.It is considered under the subject matter of Economics that every resource has a value or importance as it is scarce or will be diminished in future and hence, every resource has an opportunity cost.Opportunity cost of any resource implies the alternative use of that particular resource that is foregone or sacrificed.

Since,every resource is scarce,it is important how human beings use or utilize them.If it is used in one way,the other way/s it could have been used are gone or sacrificed and since human wants are unlimited,we have to constantly make choices with the scarce resources in our lives.Hence, the discussion on scarcity leads to the alternative uses of resources.