Scarcity: A Problem for All Countries Alike

Thursday, January 12, 2017

Scarcity indicates that resources are not enough to satisfy the unlimited wants of human being.
It means that a particular commodity is not enough in supply for the complete satisfaction of human wants.

Scarcity arises when the supply of a particular commodity is limited in relation to its demand. Scarcity is the central problem in economics.

It dictates that we must answer the three basic questions of allocation. They are:
Ø What to produce?
Ø How to produce?, and
Ø For whom to produce?

By establishing an economic system, we try to find the best solution for the above questions.
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