Scarcity
In Economics, scarcity can be defined as the instance when a
commodity or resource is limited in supply. Whenever this condition prevails
then scarcity is said to have occurred.
In Economics, resources are always in short supply with
regards to the desire or want for these resources. The resources available to people
are always insufficient to satisfy the wants of the people. To an Economist,
resources are always limited whereas human wants are always endless or
unlimited. This is what economic concept of scarcity means.
Choice
The economic concept of choice simply refers to the act of
choosing from two or more alternatives that a person is confronted with. Choice
comes as a result of the problem associated with scarcity of resources. Because
resources are always scarce, people have to make choices in order to make sure
that they are able to use their scarce resources to satisfy their most pressing
wants or needs. This is what the economic concept of choice means.
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