Economics
ECONOMICS
CHAPTER 1
ECONOMIC WAY OF THINKING SCARE RESOURCES
WEALTH OF THE NATIONS
ECONOMICS:
ADAM SMITH
STAR CITY
Scarcity
Scarcity is the basic and central economic problem confronting every society. It is the heart of the study of economics and the reason behind its establishment.
Authors have defined scarcity in various way some if which are complexly stated. One author defines scarcity as a commodity or service being in short supply, relatives to its demand (Kapur 1997) which implies a constant availability of commodity or economic resource relatives to the demand for them. In quantitative terms, scarcity is sad to exist when at a zero price there is a unit of demand, which exceeds the available supply (kapur 1997). Simply put, scarcity pertains to the limited availability of economic resources relative society’s unlimited demand for goods and services.
This figure illustrate the intersection of limited resources available and the unlimited wants of society. If limited resources fall short to meet the unlimited wants of the society, it will eventually create a problem, which is called. “scarcity”.
Since human wants and need are unlimited and available resources are finite, scarcity naturally results leaving the society with the problem of resources allocation. See Figure 1.1
Figure 1.1: Problem of Scarcity Limited Resources Unlimited Wants
Scarcity Economics
Economics is a science that deals with the management of scarce resources. It is also described as a scientific study on how individuals and the society generally make choices (Fajardo 1997). Specifically, it is the study of the problem of using available economic resources as efficiently as possible a as to attain the maximum fulfillment of society’s unlimited demand for good and series. As Slaving (2005) puts it, economics is simply scarcity and choice.
It should be noted that individuals and groups within the society have
CHAPTER 1
ECONOMIC WAY OF THINKING SCARE RESOURCES
WEALTH OF THE NATIONS
ECONOMICS:
ADAM SMITH
STAR CITY
Scarcity
Scarcity is the basic and central economic problem confronting every society. It is the heart of the study of economics and the reason behind its establishment.
Authors have defined scarcity in various way some if which are complexly stated. One author defines scarcity as a commodity or service being in short supply, relatives to its demand (Kapur 1997) which implies a constant availability of commodity or economic resource relatives to the demand for them. In quantitative terms, scarcity is sad to exist when at a zero price there is a unit of demand, which exceeds the available supply (kapur 1997). Simply put, scarcity pertains to the limited availability of economic resources relative society’s unlimited demand for goods and services.
This figure illustrate the intersection of limited resources available and the unlimited wants of society. If limited resources fall short to meet the unlimited wants of the society, it will eventually create a problem, which is called. “scarcity”.
Since human wants and need are unlimited and available resources are finite, scarcity naturally results leaving the society with the problem of resources allocation. See Figure 1.1
Figure 1.1: Problem of Scarcity Limited Resources Unlimited Wants
Scarcity Economics
Economics is a science that deals with the management of scarce resources. It is also described as a scientific study on how individuals and the society generally make choices (Fajardo 1997). Specifically, it is the study of the problem of using available economic resources as efficiently as possible a as to attain the maximum fulfillment of society’s unlimited demand for good and series. As Slaving (2005) puts it, economics is simply scarcity and choice.
It should be noted that individuals and groups within the society have