Yr. & Sec.: II-EE
Prof.: Mrs. Marissa Yolanda C. Samonte
A pervasive condition of human existence that results because society has unlimited wants and needs, but limited resources used for their satisfaction. This fundamental condition is the common thread that binds all of the topics studied in economics. Scarcity is a perpetual problem facing society due to limited resources andunlimited wants and needs satisfied with these resources. Scarcity means that society does not have enough of everything (resources) for everyone (wants and needs). Two Components
Consider the two sides of the scarcity problem.
* Unlimited Wants and Needs: This is a basic characteristic of humanity which means that people are never totally satisfied with the quantity and variety of goods and services. It means that people never get enough, that there is always something else that they would want or need.
* Limited Resources: This is a basic condition of nature which means that the quantities of available resources used for production are finite. It means that the economy has only so many resources that can be used AT ANY GIVEN TIME time to produce other goods and services. Humans live in a world of scarcity. This world of scarcity is what the study of economics is all about. That is why scarcity is usually subtitled: THE ECONOMIC PROBLEM. Scarcity does not preclude technological advances and other discoveries that "lessen" the scarcity problem with better ways of satisfying wants and needs. In fact, scarcity actually predicts such things. People are motivated to work, go to school, invent products and discover new continents because they do not have all that they want. Why invent, discover, or explore if all wants and needs are satisfied? Increasing limited resources does not make them unlimited only less limited. Scarcity persists. Solutions?
Scarcity has been a perpetual, pervasive problem of humanity. There is no reason...