Scarcity
Definition
Scarcity refers to the limited availability of resources in relation to unlimited wants and needs. It means that there are not enough resources to satisfy all human desires.
Analogy
Imagine you're at a buffet with a limited amount of food. You have a big appetite, but there's only so much food available. No matter how much you want to try everything, scarcity means you'll have to make choices about what dishes you can actually eat.
Related terms
Choice: The act of selecting or making a decision between alternatives.
Demand: The quantity of goods or services that consumers are willing and able to buy at a given price.
Supply: The quantity of goods or services that producers are willing and able to offer for sale at a given price.
"Scarcity" appears in:
Subjects (2)
Study guides (2)
Additional resources (1)
Practice Questions (6)
- What is one result of scarcity in an economy?
- Which of the following is a consequence of scarcity?
- Why does scarcity exist?
- Which of the following best explains the relationship between scarcity and choice?
- What is a characteristic of scarcity in economics?
- When do you face scarcity?
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