Which of the following statements are true?
(A) Scarcity means that the resources of a society are limited in comparison to what people collectively want to have.
(B) Resources are those goods and services which are used to produce other goods and services.
(C) Scarcity of resources is faced by the society as a whole but not by individuals.
(D) Scarcity of resources removes the need to make a choice.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) and (B) only
Scarcity means resources are limited compared with what people want. It is faced by everyone and it forces a choice.
(A) Scarcity means that the resources of a society are limited in comparison to what people collectively want to have. — Correct. This is the meaning of scarcity.
(B) Resources are those goods and services which are used to produce other goods and services. — Correct. Land, labour, tools and machinery are examples of resources.
(C) Scarcity of resources is faced by the society as a whole but not by individuals. — Incorrect. Everyone faces scarcity. A family farm, too, has only limited resources.
(D) Scarcity of resources removes the need to make a choice. — Incorrect. Scarcity gives rise to the problem of choice. It does not remove it.
NCERT (2026-27): “1.1 A Simple Economy … It goes without saying that no individual has unlimited resources compared to her needs. The amount of corn that the family farm can produce is limited by the amount of resources it has, and hence, the amount of different goods and services that it can procure in exchange of corn is also limited. As a result, the family is forced to make a choice between the different goods and services that are available. It can have more of a good or service only by giving up some amounts of other goods or services. For example, if the family wants to have a bigger house, it may have to give up the idea of having a few more acres of arable land. If it wants more and better education for the children, it may have to give up some of the luxuries of life. The same is the case with all other individuals in society. Everyone faces scarcity of resources, and therefore, has to use the limited resources in the best possible way to fulfill her needs.” “… Just as the resources of an individual are scarce, the resources of the society are also scarce in comparison to what the people in the society might collectively want to have. The scarce resources of the society have to be allocated properly in the production of different goods and services in keeping with the likes and dislikes of the people of the society.” “By resource, we mean those goods and services which are used to produce other goods and services, e.g. land, labour, tools and machinery, etc.” “1.2 Central Problems of an Economy Production, exchange and consumption of goods and services are among the basic economic activities of life. In the course of these basic economic activities, every society has to face scarcity of resources and it is the scarcity of resources that gives rise to the problem of choice. …” |