Answer to Question #90996 in Microeconomics for Anagha ifeanyi imo

Question

It is orthodox to say people's desire has no boundaries from the time past even in the face realistic limited resources, individual agents never stop to want more of economic output. Kindly enlightened me about it.

Answer 1

This statement is true, because according to the concept of scarcity people's wants are unlimited even if resources are limited.

Scarcity refers to a gap between limited resources and limitless wants, so there is never enough of something to satisfy all human wants, even at advanced states of human technology. Scarcity involves giving something up, or making a tradeoff in order to obtain more of the scarce resource that is wanted.