“Only 'Scarce Goods' attract price." Comment. - Vidyadip

Question

“Only 'Scarce Goods' attract price." Comment.

✓

Answer

The given statement is correct.
All resources are not scarce in the economy. For example, the water taken from river or air we breathe is abundant in relation to wants. Such goods are available free of cost. These goods are known as Non-Economic Goods.
On the other hand, some goods are scarce in relation to their wants. For example, diamonds, petrol, electricity, etc. are scarce in relation to wants. These goods command price and are known as Economic Goods.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Introduction of Micro-Economics→Introduction of Micro-Economics — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Explain any two main features of a centrally planned economy.

Explain the difference between an inferior good and a normal good.

Consider a market with two firms. The following table shows the supply schedules of the two firms: the $SS1$ column gives the supply schedule of firm $1$ and the $SS2$ column gives the supply schedule of firm $2$. Compute the market supply schedule.

Price (Rs)	$SS_1$ (units)	$SS_2$ (units)
0 1 2 3 4 5 6	0 0 0 1 2 3 4	0 0 0 1 2 3 4

From the following table find out the phase during which there are increasing returns to a factor.
Give reasons for your answer:

Units of Variable Factors	1	2	3	4	5
AP (units)	20	24	28	29	28

Giving reasons, comment on the following statements:

A consumer's equilibrium is always formed at a point on the given budget line.
A consumer's equilibrium will shift to a higher indifference curve with an increase in consumer's income.

Explain feature of homogeneous product.
OR
Explain the implication of homogeneous product.

In a perfectly competitive market, the buyers treat products of all the firms as homogeneous. Explain the significance of this feature.

Define Marginal Opportunity Cost. Explain the concept with a hypothetical numerical example.

Give the meaning of 'inferior good' and explain the same with the help of an example.
OR
What is an inferior good? In what manner is the demand curve of such a good affected when income of the consumer increases? Use diagram.

A good is an “inferior' good for one and at the same time a 'normal' good for another consumer. Do you agree? Explain.