Scarcity

Scarcity is an important concept in economics. Scarcity means that resources such as manpower, natural resources and capital are limited and never can satisfy everyone's needs and preferences as these are unlimited.

Scarcity means that we must choose what is to be produced in a country, we can not produce everything that is desired. The choice of what to produce can be done in a market or through decisions such as the case is in a planned economy. The most common way to determine what to be produced in an economy is by a mix of decisions and market forces, mixed economy.

Resources are also called factors of production, and these are limited in relation to our needs and requests. Scarcity is an important starting point for the study of a country's economy.