ECONOMICS

Detailed explanation-1: -Scarcity, or limited resources, is one of the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants. Therefore, we have to choose.

Detailed explanation-2: -Scarcity is the basic economic problem. It arises from the insufficiency of resources to satisfy people’s wants. Scarcity is ubiquitous. Rich people face scarcity when they want more than they can buy, when they can’t be in two places at once, and when, accordingly, they must choose among alternatives.

Detailed explanation-3: -The existence of scarcity creates the basic economic problem faced by every society, rich or poor: how to make the best use of limited productive resources to satisfy human needs and wants.

Detailed explanation-4: -Every economy has to deal with the concept of scarcity and must answer the questions “what to produce?”, “how to produce?” and “for whom to produce?” Capitalism, socialism, and communism are the three major economic systems. All economic systems have advantages and disadvantages.