Two services that exist in your school
- why is what we want scarce
- why is what we want scarce economics
- why is everything we want scarce
- why do we want scarce
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An image of drought and a plant.
Introduction
Economics is the study of human behaviour when people face limited resources to satisfy their unlimited wants.
Since human wants are unlimited while resources are limited, people cannot satisfy all of their wants.
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This problem is called the problem of scarcity and is considered a key concept in economics. In this article, we will explain scarcity in detail.
What is Scarcity?
The limited availability of resources in contrast to unlimited wants is known as scarcity in economics.
Scarcity leads to economic problem, which means that due to the limited availability of resources, it is impossible to satisfy all of our unlimited wants. Due to scarcity, individuals, firms, and governments are forced to make choices.
Historical Background
The following points explain the historical background of scarcity:
Classical Economics and Thomas Malthus
An economist named Thomas Malthus first recognised the problem of scarcity in the late 18th and early 19th centuries.
He argued that a rapid increase in population can
- why are things scarce
- what will we never do in a world of scarcity