Chapter - 11 Why Choices Matter: The Basics of Economics
Chapter - 11 Why Choices Matter: The Basics of Economics 1. Scarcity and the Need for Choice Meaning of Scarcity:- Scarcity is the basic economic problem. It occurs because: Resources are limited Human wants are unlimited We cannot satisfy all our wants at the same time. Example:- A student wants a phone, clothes, coaching, and vacation, But income is limited → must choose Limited Resources and Unlimited Wants Unlimited Wants Human wants never end When one want is satisfied, another arises Example:- After buying a phone → want a better version Limited Resources Resources are finite (limited). Examples:- Family → limited income, Student → limited time (24 hours) Country → limited land & natural resources Everyday Examples of Scarcity Student Life Limited time before exams but many subjects to study You must choose which subject to study first Household Budget A family has limited income Must decide between groceries, school fees, or entertainment Water Shortag...